The Virus is back on the move, with record data emerging across the US and EU, and fresh restrictions coming into place in France, Germany, Italy, and a number of US states.
At the same time, US top health leaders have come out with a projected timeline for a widely available vaccine that talks in terms of next summer. In other words, we still have a long time to go with testing and social distancing as the only major weapons in our arsenal, and the virus isn’t backing down.
That means our top testing resources will be vital, and new innovations in that space could fuel new and productive opportunities for investors along the way.
With that in mind, here are a few of the more interesting names in the Covid testing space: Abbott Laboratories (NYSE:ABT), Allstar Health Brands Inc (OTCMKTS:ALST), and Quest Diagnostics Inc (NYSE:DGX).
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide.
The company’s Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automates the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detects and measures infectious agents; cartridges for blood analysis; rapid diagnostics systems; molecular point-of-care testing for HIV, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test systems, as well as remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. It also has nutrition and pharmaceutical divisions.
Abbott Laboratories (NYSE:ABT) recently announced that the U.S. Food and Drug Administration (FDA) has issued Emergency Use Authorization (EUA) for its BinaxNOW™ COVID-19 Ag Card rapid test for detection of COVID-19 infection.
According to the release, Abbott will sell this test for $5. It is highly portable (about the size of a credit card), affordable and provides results in 15 minutes. BinaxNOW uses proven Abbott lateral flow technology, making it a reliable and familiar format for frequent mass testing through their healthcare provider. With no equipment required, the device will be an important tool to manage risk by quickly identifying infectious people so they don’t spread the disease to others.
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action ABT shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. ABT shares have been relatively flat over the past month of action, with very little net movement during that period.
Abbott Laboratories (NYSE:ABT) managed to rope in revenues totaling $8.9B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 9.6%, as compared to year-ago data in comparable terms.
Fulgent Genetics Inc (NASDAQ:FLGT) provides genetic testing services to physicians with clinically actionable diagnostic information. Its technology platform integrates data comparison and suppression algorithms, adaptive learning software, and genetic diagnostics tools and integrated laboratory processes.
The company primarily serves hospitals and medical institutions. It sells its tests through internal sales force, as well as through independent sales representatives in the United States and internationally.
Fulgent Genetics Inc (NASDAQ:FLGT) most recently announced that the Ohio Department of Rehabilitation and Correction has selected Fulgent Genetics for their COVID-19 testing needs.
“We look forward to aiding the Ohio Department of Rehabilitation and Correction in their effort to protect their employees and curb the spread of COVID-19 across their facilities,” commented Brandon Perthuis, Chief Commercial Officer of Fulgent Genetics. “Our Enterprise Platform offering enables the ODRC to test their employees in an extremely efficient manner, a process that takes approximately one minute per person. This offering provides a flexible and comprehensive testing solution for the ODRC that utilizes our gold-standard RT-PCR testing capabilities. Fulgent continues to raise the bar in offering COVID-19 testing solutions that meet the needs of large organizations and municipalities in a highly efficient and accurate manner.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action FLGT shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -16%.
Fulgent Genetics Inc (NASDAQ:FLGT) pulled in sales of $17.3M in its last reported quarterly financials, representing top line growth of 105%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($21M against $6.5M).
Allstar Health Brands Inc (OTCMKTS:ALST) is a specialty pharmaceutical and nutritional supplements company. One of its core assets at this point is its partnership with TPT Global Tech, a technology and solutions company. The two companies are collaborating to create and distribute the QuickLAB module, a rapid testing solution for Covid-19.
The two companies had already recently signed an agreement for Mexico and other Latin American countries through TPT Global Tech’s partner New Orbit Technologies. Now, they have signed an expanded agreement to bring QuickLAB distribution to Canada and US to add to the existing Non-Exclusive Distribution Agreement for Mexico and other Latin American countries.
Allstar Health Brands Inc (OTCMKTS:ALST) most recently announced an update on its diverse lines of business, including its latest efforts in the battle against the novel coronavirus SARS-CoV-2, the virus that causes COVID-19.
According to the release, on the Covid-19 front, AllStar Health Brands is seeing growing adoption and uptick in interest from current and new end-users for its diagnostic test kits for COVID-19, both for its antibody and its PCR tests, expecting an upward trend in sales in 2020 and 2021. Additionally, the Company is seeking to expand into the antigen test market.
“We’re unfortunately seeing rapid spreading of the coronavirus, with 42 states showing increases last week compared to prior week,” said Dr. Daniel Bagi, President of AllStar Health Brands. “Diagnosing the virus as quickly and as efficiently as possible will be a critical element to fighting this, particularly as a viable vaccine or therapeutic treatment appears to still be many months away from being broadly available to the general public.”
Allstar Health Brands Inc (OTCMKTS:ALST) generated sales of $178K, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 224.2% on the top line. ALST is surely a more speculative name on this list. But with the company’s recent expansion and partnership, it may also be the most underpriced.
Quest Diagnostics Inc (NYSE:DGX) provides diagnostic testing information and services in the United States and internationally. The company’s Diagnostic Information Services business segment develops and delivers diagnostic testing information and services, such as routine testing, non-routine and advanced clinical testing, gene-based and esoteric testing, anatomic pathology, and other diagnostic information services.
This segment offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, Athena Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals.
Quest Diagnostics Inc (NYSE:DGX) recently announced that it has received the prestigious C. Everett Koop National Health Award for 2020. According to the release, Named for C. Everett Koop, the 13th Surgeon General of the United States (1982-1989), the award is given by The Health Project to organizations that demonstrate their health programs deliver significant health improvements and business results. In a quarter of a century, fewer than 70 organizations have won the honor.
“Quest Diagnostics is committed to fostering a healthier world, starting with our employees,” said Steve Rusckowski, Chairman, CEO and President, Quest Diagnostics. “To achieve that goal, we empower our employees with health insights, based on lab and biometric data. But we don’t stop there. We also provide our employees with access to medical expertise and support programs tailored to their individual needs, helping them to adopt healthier behaviors and access better care at lower costs. We are proud to be recognized for our achievements with the C. Everett Koop Award.”
Even in light of this news, DGX hasn’t really done much of anything over the past week, with shares logging no net movement over that period.
Quest Diagnostics Inc (NYSE:DGX) generated sales of $2.8B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 52.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.6B against $2.4B, respectively).
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