What has financial traders so excited about Virax Biolabs (NASDAQ:VRAX) today? In a fresh press release, Virax Biolabs disclosed a testing kit for the disease commonly known as avian flu or bird flu. Plus, the company intends to distribute this kit in the European Union. Upon learning of these developments, investors quickly bid up the VRAX stock price this morning.
Virax Biolabs is a diagnostics company that focuses on viral diseases, generally in the field of immunology. Among the diseases that Virax is attempting to address is Avian Influenza A Virus (), sometimes known as the avian flu.
As Virax Biolabs explains, human AIV infections “have occurred in many countries.” Mainly, these infections occurred “after exposure to infected poultry or virus-contaminated environments.” AIV can result in infections with mild to severe symptoms and complications.
Virax Biolabs’ test kit is meant to be used in laboratory settings, and it can help individuals screen for AIV and/or assist healthcare professionals with identifying an AIV infection. Now, let’s see how Wall Street responded to the news of Virax’s AVI testing kit.
What’s Happening With VRAX Stock?
The reaction was immediate as VRAX stock shot up 140% this morning before pulling back somewhat. By 10:30 a.m. Eastern, shares were still up around 100% and easily above the crucial $1 level.
I call the $1 level “crucial” because it may be considered a delisting-threat cutoff line by the Nasdaq exchange. So, Virax Biolabs’ investors should definitely be in good spirits if shares stay north of $1.
Virax’s shareholders should also be glad to know that the company is bringing its AIV testing kit to markets that accept the CE mark. In particular, these markets would be found in the European Union.
Virax Biolabs pointed out that the H5N1 strain of AIV is spreading in Europe. Therefore, the timing is right for Virax to provide its AIV testing kit, and today’s traders are optimistically buying 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.