Astrotech (ASTC) Stock Rockets on COVID

Astrotech ASTC Stock News

Astrotech Corp (NASDAQ: ASTC) is flying in the market this morning, and for good reason. The company announced that it has entered into a partnership centered around COVID-19 testing, leading to gains of well over 100%. Here’s what’s going on:

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ASTC Stock Is Soaring on COVID-19 Partnership News

In the press release, Astrotech said that its subsidiary, BreathTech, announced that it has entered into a joint development agreement with Cleveland Clinic. Under the terms of the agreement, the two will work together to leverage BreathTest-1000 from ASTC to rapidly screen for COVID-19 or related indicators.

In the release, the company said that the goal of the agreement is to develop a non-invasive device that will use breath samples to identify COVID-19 strains. The technology has the potential to lower the cost of testing, provide self-service screening options, and reach the masses with deployment on a large scale.

In a statement, Thomas B. Pickens III, CEO, and CTO at the ASTC subsidiary, BreathTech, had the following to offer:

We are pleased to announce that we have entered into this partnership with a highly experienced respiratory disease detection group. Dr. Dweik and his colleagues have successfully led many clinical trials applying mass-spec to identify unique metabolites using the breath. Over the past months, both teams have evaluated and explored a framework to collaborate in the development of the BreathTech technology at Cleveland Clinic and believe that our mass-spec technology has potential to play an important role in providing a quick, non-invasive, easy-to-use screening device that can be utilized in hospitals, nursing homes, schools and airports in an effort to get all of our lives back to normal again.

This News Is Huge

The news released by Astrotech this morning proved to be overwhelmingly positive. At the moment, we’re seeing growth in COVID-19 cases as a second wave of the virus seems to be an imminent threat. While vaccines and treatment options may be around the corner, the need for COVID-19 testing on a mass scale will likely to continue for some time to come.

However, there’s a problem with COVID-19 testing. At the moment, the only two options are a finger prick or a nasal swab. The finger prick doesn’t bode well for those afraid of needles, which represents about 20% of the global population. The nasal swab is incredibly uncomfortable. So technically, both options are invassive.

However, if ASTC and Cleveland Clinic are able to develop this test and prove its efficacy, it could become the standard. After all, this is a breath test, which means that it will not be uncomfortable in any way. All in all, ASTC stock is one to watch closely.

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