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Biocept’s Covid-19 Testing Capacity Puts It at the Head of the Pack

Unfortunately, the coronavirus isn’t going anywhere just yet, as the surge of infections in parts of the US shows no signs of slowing down. In many areas, the number of cases has continued to rise; Seven states — Arizona, Arkansas, California, North Carolina, South Carolina, Tennessee and Texas reported the highest amount of hospitalizations since the pandemic’s onset.

To help in the battle against COVID-19, diagnostics specialist Biocept (BIOC) has entered the fray. The micro-cap has manufactured 10,000 nasopharangeal swab collection kits, which will be available by 3Q to conduct PCR testing for COVID-19 in California.

Maxim analyst Jason McCarthy believes “Biocept may be in the right place at the right time.”

“The availability of Biocept’s collection kits comes at a crucial time when California is seeing a surge in COVID-19 cases as well as undergoing reopening. With the capacity to perform up to 2,000 tests per day, Biocept could play a role in the testing regimen for California,” said McCarthy.

As far as the commercial opportunity is concerned, taking into consideration the $100 reimbursement from the Centers for Medicare & Medicaid Services (CMS) for every test in labs with high throughput testing technology – for which Biocept qualifies – the 10,000 kits could represent revenue of $1 million. However, Biocept could potentially increase the testing capacity by a large margin.

“The number is far below Biocept’s laboratory capacity,” McCarthy said. The 5-star analyst added, “Which stands at 300-2,000 tests per day, meaning the number could increase significantly. We expect Biocept to continue to build-out its sample collection kit production.”

To this end, McCarthy keeps a Buy rating on Biocept shares along with a $1 price target. Investors will be looking at a 57% gain, should McCarthy’s call play out over the next 12 months. (To watch McCarthy’s track record, click here)

Over the last three months, only one other analyst has posted a review regarding Biocept’s prospects. The additional Buy provides the micro-cap with a Moderate Buy consensus rating, while the average price target of $1.53 suggests potential upside of a hefty 120%. (See Biocept stock-price forecast on TipRanks)

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Marty Shtrubel
Marty Shtrubel was born in the UK, raised in Israel, and then headed back to London, where he made music and pursued a career in sound recording. After a move back to Tel Aviv, he set off on a new path and now works as a financial blogger at TipRanks.

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