NovaBay Pharmaceuticals NBY Stock News

NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN: NBY) is making a run for the top in the market this morning, trading on gains of nearly 100% early on. The gains come after the company announced that it signed a distribution agreement surrounding a COVID-19 rapid test. Here’s what’s happening:

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NBY Stock Heads Up On COVID-19 Rapid Test Agreement

In the press release, NovaBay Pharmaceuticals said that it reached an agreement with Shenzhen Microprofit Biotech. Under the terms of the agreement, NBY will become the exclusive United States distributor of a rapid, finger prick test for COVID-19.

Importantly, the test not only recognizes if the patient is infected, but also provides a potential indication of antibody immunity.

In the release, the comapny said that the test, known as fluorecare SARS-CoV-2 IgG & IgM Antibody Combined Test Kit, is a point of care test administered by a healthcare professional. Using just a drop of blood, the test provides results in about ten minutes.

In a statement, Justin Hall, CEO at NBY, had the following to offer:

Public health experts and leaders across our country are citing a critical need for mass testing and tracing procedures for those who are infected or have been infected with COVID-19 before reopening the nation’s economy. Nasopharyngeal (back of the nose and throat) swabs for molecular detection are expensive and require laboratory testing that can lead to delays in obtaining results. Through a simple finger prick, IgG/IgM testing could provide for cost-effective detection of COVID-19 antibodies with results available in minutes as an important step in tracking the infection.

We are delighted once again to work with our global health supplier network to secure a product that can help our communities during the COVID-19 pandemic and, subject to FDA clearance, we plan to offer the fluorecare test kit at very competitive pricing.

With the agreement signed, NBY said that it will submit the fluorecare test kit to the FDA under Emergency Authorization Use.

Why Investors Are So Excited

There’s good reason for the excitement here. At the end of the day, the coronavirus pandemic is no laughing matter. As it changes the shape of life as we know it, some of the smartest scientific minds around the world are working to end the pandemic.

An important tool in the fight against COVID-19 is testing. However, we have all heard that though there are tests available, the capacity still isn’t what it needs to be. That’s where NovaBay comes in.

With the licensing of the rapid test, the company will likely quickly receive commercial approval in this emergency situation. Considering the spread of the pandemic, demand for testing continues to grow, giving NBY a tremendous revenue opportunity upon approval. So, this is a stock that should be watched closely.

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