Shares of molecular diagnostics company Co-Diagnostics (CODX -8.52%) jumped 24% Thursday after the company reported a surge in demand for its tests for COVID-19. The new demand came following the announcement by the U.S. Food and Drug Administration (FDA) last weekend that opened the door for test labs to use the tests before they approved by the agency.
The change in FDA policy allows laboratories to use tests after in-house validation, and Co-Diagnostics said that it's receiving requests from U.S. clinical laboratories for reagents in preparation for patient testing. The company said that it is now manufacturing and shipping coronavirus products to countries on four continents and that it plans to triple the manufacturing capacity for this test in its facility in India.
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Co-Diagnostics stock has been on a wild ride as investors scramble for opportunities afforded by the COVID-19 epidemic. Shares of the company have soared almost five-fold in the last two weeks and are up over 1,500% in 2020, making it one of the biggest winners from the coronavirus scare.
However, the company has been rather tight-lipped about actual financial results from the potential windfall while it continues to take advantage of the rising stock price by issuing new shares for direct placement with its investors. Co-Diagnostics raised $4.2 million in a direct offering of common stock this week, after raising $10.2 million on February 13 and $5 million on January 28.
