GenMark Diagnostics (GNMK) Stock Jumps On COVID-19 Test News

GenMark Diagnostics GNMK Stock News

GenMark Diagnostics, Inc (NASDAQ: GNMK) is screaming for the top in the premarket this morning. The company is trading on gains of more than 60% after announcing FDA emergency use authorization for its coronavirus diagnostic test. Here’s what’s happening:

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GNMK Stock Rockets After FDA Grants Emergency Use

In the press release, GenMark Diagnostics said that the United States FDA has issued Emergency Use Authorization, or EUA, for its ePlex SARS-CoV-2 Test. The test was developed for the qualitative detection of SARS-CoV-2 virus in nasopharyngeal swab samples.

Of course, samples are taken from patients that are suspected of having been infected by COVID-19 by their health care provider.

GNMK said that the test is exclusively for use on the company’s ePlex system. As of December 31, 2019, this system had a global installed base of more than 500 analyzers.

Importantly, the company said that its ePlex system’s modular and expandable design enables near-patient COVID-19 testing to be widely accessible in order to meed the needs of multiple types of laboratories, from small decentralized sites to large central hospitals and labs.

In a statement, Scott Mendel, Interim CEO at GNMK, had the following to offer:

Because ePlex enables near-patient testing and is available in hospitals and labs across the United States and in more than 30 countries, results can be returned to doctors and patients more rapidly than with other platforms. Our unique ability to quickly diagnose and begin treatment of critically ill patients addresses the challenges associated with the coronavirus pandemic. We are proud of our team’s ability to rapidly respond to this urgent public health crisis. The FDA’s Emergency Use Authorization of our test supports GenMark’s commitment to provide critical and actionable diagnostic information to healthcare providers so that they can better manage their patients.

Why This News Is So Exciting

In the face of a pandemic, fast, yet accurate diagnostic testing plays a very important role. After all, once consumers know that they have been infected by the coronavirus, they can take extra steps to ensure that they stay away from others in the population.

This is why GenMark Diagnostics’ news is so important. The company’s COVID-19 test provides results in under two hours with the capacity to process up to 96 tests per 8-hour shift. This type of testing is under urgent need, not only in the United States, but around the world.

In fact, with such an urgent need, demand is strong. Moreover, GNMK is working to increase its capabilities to meet demand. At the moment, the company can produce around 100,000 tests per month. However, that number is expected to increase as Mr. Mendel pointed to the fact that “demand for [the company’s] tests has been extraordinary, especially as centralized testing supply has been limited.

All in all, the company may be sitting on a gold mine. Ultimately, as the coronavirus continues to spread, the demand for rapid diagnostic testing is only likel to grow. Considering the fact that GNMK will be making its tests available to the public very shortly, we can expect to see an incredible rise in revenue ahead.

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