COVID-19 Testing Stocks Move Lower After Abbott Receives EUA For 15-Minute Test

Abbott Laboratories ABT announced late Wednesday the receipt of emergency use authorization from the FDA for its $5, 15-minute COVID-19 antigen test.

Abbott's BinaxNOW could be transformative, Morgan Stanley analyst David Lewis said in a note.

The test is bigger and better than expected, given the $5 price point; the fact that it's a nasal swab; its better-than-expected performance; and a higher shipment volume, the analyst said. 

The Sympathy Move: The announcement, though catalyzing a strong upward move in the shares of Abbott, is proving negative for the shares of a host of molecular diagnostic companies that have their own coronavirus tests. 

Quidel Corporation QDEL provides Sofia SARS Antigen and Lyra SARS-CoV-2 molecular tests for detecting SARS-CoV-2.

Co-Diagnostics Inc CODX has an in vitro diagnostic test, the Logix Smart COVID-19 test kit, which uses the company's CoPrimer technology.

It uses a real-time reverse transcriptase polymerase chain reaction process in swabs collected from lower respiratory tract fluids and upper respiratory tract fluids. It received emergency use authorization in early April.

GenMark Diagnostics, Inc's GNMK ePlex SARS-CoV-2 Test is an automated qualitative nucleic acid multiplex assay designed to detect SARS-CoV-2 nucleic acid in nasopharyngeal swabs.

The test received EUA in mid-March. 

Chembio Diagnostics Inc's CEMI antibody test DPP COVID-19 IgM/IgG was among the earliest tests to receive EUA.

Yet the authorization was revoked in mid-June due to performance concerns. The company said in its second-quarter earnings release that it it seeks to reapply for EUA in the third quarter.

Hologic, Inc. HOLX received EUA for its Panther Fusion SARS-CoV-2 test in mid-May. This PCR in vitro diagnostic test is intended for the qualitative detection of RNA from SARS-CoV-2 isolated and purified from nasopharyngeal and oropharyngeal swab specimens.

Biomerica, Inc. BMRA has the disposable, one-time-use COVID-19 IgG/IgM Rapid Test. The finger prick test takes about 10 minutes. It can be performed by trained professionals at any location.

Fulgent Genetics Inc's FLGT COVID-19 test is a real-time RT-PCR test, and it received EUA for the test in late May.

Fluidigm Corporation FLDM announced earlier this week that it has received EUA for the Advanta Dx SARS-CoV-2 RT-PCR Assay, an extraction-free, saliva-based test to detect nucleic acid from the SARS CoV 2 virus. The announcement sent the stock higher by 30% Wednesday.

Sorrento Therapeutics Inc SRNE said in late July it has entered into an agreement with Columbia University to license a rapid saliva test for SARS-CoV-2.

The Price Action: The diagnostic testing stocks ended Thursday's session as follows:

  • Abbott shares were 7.85% higher at $111.29.
  • Quidel shares were down 21.7% at $174.56.
  • Co-Diagnostics was down 13.19% at $11.42.
  • GenMark shares dropped 12.77% to $13.12. 
  • Chembio shares slid 17.76% to $3.78. 
  • Hologic gave up 6.63% to close at $61.54.
  • Biomerica shares fell by 2.23% to end the session at $7.47.
  • Fulgent Genetics shares were down 28.08% at $32.22.
  • Fluidigm shares plummeted 26.51% to $8.40. 
  • Sorrento fell by 4.13% to close at $8.13. 

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Posted In: CoronavirusCovid-19David LewisMorgan StanleyAnalyst ColorNewsHealth CareAnalyst RatingsMoversTrading IdeasGeneral