Small-cap business Virax Biolabs (NASDAQ:VRAX) isn’t often in the headlines, but today is a special day for the company. Reportedly, Virax’s new rapid testing kit is a triple-threat. It can test for three different diseases, and VRAX stock traders are in a good mood as the product is getting a big launch in the European Union.
Virax Biolabs specializes in developing diagnostic products for viral diseases. The big news today is that Virax’s test kit has just been introduced into markets that accept the CE mark. Typically, you’d see the CE mark in the E.U. This new test kit could prove to be a major revenue generator for the company.
These test kits are flexible, as they’re designed for use in at-home as well as point-of-care settings. They’re also flexible because they can detect infections related to three diseases: Covid-19, influenza (a.k.a. the “flu,”) and respiratory syncytial virus, or RSV.
What’s Happening with VRAX Stock?
Don’t be too surprised if Virax Biolabs’ market capitalization grows quickly today. Amazingly, VRAX stock jumped 40% early this morning before settling somewhat lower.
It’s not difficult to understand why a Covid-19 and flu infection diagnostic kit could be a strong seller. However, not everyone knows about RSV. It’s a disease that “can lead to pneumonia, congestive heart failure and severe symptoms in those with preexisting conditions involving the lungs,” according to Virax Biolabs.
Citing the European Health Management Association, Virax Biolabs further states that RSV is “the most common cause of hospitalization in infants and also causes a large number of hospitalizations among the elderly.” Thus, there are important medical implications for Virax’s rollout of this new testing kit.
The market seems to believe there are financial implications, as well. After all, Virax’s diagnostic kit could become the gold standard of triple-test kits in the E.U. If this pans out, the 40% rally could be just the start of a bigger move for VRAX stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.