OPKO Health (OPK) Stock Pops On COVID-19 Testing News

Opko Health OPK Stock News

OPKO Health Inc. (NASDAQ: OPK) is running for the top in the market this morning, trading on gains around 5%. The gains come after the company announced that it will be providing drive through COVID-19 testing. Here’s what’s going on:

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OPK Stock Runs On Drive Through COVID-19 Testing

As mentioned above, OPKO health is running for the top after announcing that it will be providing drive through COVID-19 testing. In a press release, the company said that the testing services will be provided in collaboration with the City of Detroit.

As part of the collaboration, BioReference Laboratories, a wholly owned subsidiary of OPK, will provide COVID-19 disease testing at drive-through locations. The locations will serve consumers in the state by appointment.

In a statement, Mike Duggan, Mayor of the City of Detroit, had the following to offer:

The impact that expanded testing will have on residents of the City of Detroit is immeasurable. Myself, and the residents of this great city are grateful for our relationship and partnership with BioReference.

The above statement was followed up by Jon R. Cohen, M.D., Executive Chairman of the OPK subsidiary, BioReference Laboratories. Here’s what he had to say:

This is another example of BioReference assisting local governments around the country to provide COVID-19 testing. In addition to providing the residents of Detroit increased access to testing, there are first responders in the city who are waiting to get tested and we are privileged to support the exposed men and women on the front-lines in Detroit.

Why Investors Are So Excited

There are several reasons to be excited here. First and foremost, as the United States seemingly shuts down, we see that the coronavirus is no laughing matter. Of course, in the face of any pandemic, diagnostic testing is key to public safety.

OPKO Health is one of very few companies that are already providing diagnostic tests for those suspected of having COVID-19. Of course, being one of the first to the race has its benefits. However, the excitement goes further than that.

The announcement today shows that OPK is working hard to bring its tests to patients across the United States. The company is obviously reaching out to states and municipalities, offering practical testing options. So, we’re likely to see more announcements like this ahead, and each one will likely drive strong revenue.

Furthermore, a city chosing to partner with the company is a major source of validation for the company’s work. Considering that OPK was chosen, its tests are likely perceived to be either more accurate, more efficient, or more economically sound than others. If not all three. Of course, any of these is a key competitive advantage.

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