Australia Approves Co-Diagnostics’ Covid-19 Test; Stock Falls On Profit-Taking

Co-Diagnostics’ (CODX) Covid-19 detector, the Logix Smart COVID-19 Test kit, has scored the green light from The Australian Therapeutic Goods Administration. The product is an in vitro diagnostic test for the qualitative detection of the RNA from SARS-CoV-2 coronavirus (COVID-19).

The molecular test uses a single step real-time reverse transcriptase polymerase chain reaction (RT-PCR) process in lower respiratory tract fluids and upper respiratory tract fluids from patients who meet the clinical criteria COVID-19. These include fever, cough, shortness of breath and travel history to China.

Negative results do not preclude SARS-CoV-2 infection and should not be used as the sole basis for patient management decisions, the company adds.

However, shares in CODX plunged 8% in Tuesday’s trading, and fell a further 1.4% after-hours on a bout of profit-taking after the stock’s steep climb on Monday.

The stock rallied 28% following the announcement that the company’s partner, Clinical Reference Laboratory (CRL), received Emergency Use Authorization from the US FDA for CRL Rapid Response, a saliva-based COVID-19 test that can be self-administered at home, and then tested using Co-Diagnostics’ patented CoPrimer technology.

“We believe that CRL’s selection of the Co-Diagnostics platform, and their successful emergency use authorization from the FDA, speaks volumes about the quality, sensitivity, and specificity of our CoPrimer primer and probe technology,” remarked Dwight Egan, CEO of Co-Diagnostics.

Indeed shares in Co-Diagnostics have exploded over 3000% year-to-date, and the stock still maintains a bullish Strong Buy Street consensus. That’s alongside an average analyst price target of $34 (19% upside potential).

“Logix Smart COVID-19 test’s high accuracy [has been] independently validated for multiple times” comments HC Wainwright analyst Yi Chen, adding that time to detection is just 63-90 minutes. With the U.S. continuing to record over 60,000 new cases of Covid-19 daily Chen expects Co-Diagnostics to continue to provide its partners with large volumes of its Logix Smart Covid-19 test kits.

The analyst reiterated his buy rating on the stock with a $35 price target following the approval of the company’s self-collecting Covid-19 saliva test. (See CODX stock analysis on TipRanks).

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