Co-Diagnostics (CODX) has announced an agreement with Promega Corporation for additional manufacturing capacity for its Logix Smart Covid-19 test. The stock is currently trading up a whopping 1009% year-to-date at $9.93, with a 13% increase on April 13.
Promega will provide manufacturing support for immediate production of large volumes of the company’s Covid-19 test kits to help CODX meet the rapid increase in demand from both the US and the rest of the world.
Following the news HC Wainwright analyst Yi Chen reiterated a buy rating on the stock with a price target of $20. This indicates that prices can potentially double from current levels.
“In our view, this represents an indication of strong underlying demand and commercial potential; the Promega relationship shall be crucial, from our vantage point, as Co-Diagnostics seeks to expand its domestic outreach to public and private laboratories across the U.S” the analyst wrote on April 14.
The move comes after the company received FDA Emergency Use Authorization for Logix Smart Test on April 3.
Currently, CODX’s Covid-19 test serves customers on 5 continents and multiple locations in the United States. This includes the company’s involvement with Test Utah, an initiative with the goal of dramatically increasing testing in Utah, and which, according to CODX “has caught the attention of governors from around the country who want to know how they can launch similar public-private partnerships in their own states.”
“Co-Diagnostics’ cost-effective PCR product provides a single-well diagnostic solution that requires fewer reagents than multi-well tests, designed to allow laboratories to increase their throughput while patients benefit from the results of our patented, highly-specific CoPrimer technology” commented Dwight Egan, CEO of Co-Diagnostics.
Overall the stock shows a Moderate Buy rating on TipRanks, with a Hold rating from Maxim’s Jason McCarthy on April 7. He cites valuation concerns as behind his decision to stay on the sidelines. (See CODX’s stock analysis on TipRanks)
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