Why Is Lucira Health (LHDX) Stock Up 237% Today?

  • Lucira Health (LHDX) stock is taking off on an update from the U.S. Food and Drug Administration (FDA).
  • That includes approval for its at-home Covid-19 and flu test kits.
  • This news comes just a few days after the company filed for bankruptcy.
LHDX Stock. A Medical healthcare technologist holding COVID-19 swab collection kit, wearing white PPE protective suit mask gloves, test tube for taking OP NP patient specimen sample,PCR DNA testing protocol process

Source: Cryptographer / Shutterstock.com

Lucira Health (NASDAQ:LHDX) stock is rocketing higher on Monday thanks to an update from the U.S. Food and Drug Administration (FDA).

The big news here is Lucira Health getting FDA authorization for its at-home combination Covid-19 and flu tests. This will allow consumers to test at home whether they are infected with Covid-19 or the flu.

Lucira Health believes that the speedy results of these tests — less than 30 minutes — and the ability to take them at home will be a game changer. The company envisions a future when going to a doctor for a flu test is a thing of the past.

What About the LHDX Bankruptcy?

Lucira Health is acknowledging that the new approval for its at-home tests comes just a couple of days after a bankruptcy filing. That’s due to the company producing an inventory of its tests for 2022, but then not getting approval in time for that flu season.

Erik Engelson, President and CEO of Lucira Health, said the following on the matter:

“We remain confident in the role that the new test can play in future respiratory seasons and are honored to have received the first authorization for such a home test. We appreciate the diligent work of the FDA team as they refined requirements during the review cycle.”

Investors in LHDX stock will note that the company wants to continue with the production of its at-home tests. This has it seeking out a strategic or financial partner to aid in that effort.

LHDX stock is seeing heavy trading today with some 81 million shares on the move as of this writing. That’s well above its daily average trading volume of about 7 million shares. Shares of the stock are heading 237.1% higher as of Monday morning.

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On the date of publication, William White did not hold (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.

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