Co-Diagnostics (CODX) - Get Report shares jumped after the Food and Drug Administration granted the Salt Lake City company emergency-use authorization for its Logix Smart test for the deadly virus that causes Covid-19..
Co-Diagnostics' stock at last check surged 30% to $10.63 a share.
The FDA move comes amid a nationwide coronavirus-testing crunch, with demand far exceeding the supply for tests by hospitals, public-health officials and others fighting the pandemic.
Co-Diagnostics has said its tests can produce results in less than two hours. And it says they cost less for hospitals and other health-care organizations to run because the reagents used in the testing process cost less.
In particular, the test searches for the RdRp gene of the SARS-CoV-2 virus.
The test also requires only one well, compared to others that may require a number of wells, enabling higher throughput, the company said.
The tests are designed to be used by certified laboratories, not by consumers themselves.
"It is a significant step in opening more doors and helping this test to reach an even wider audience," Chief Executive Dwight Egan said in a statement.
Shares of Co-Diagnostics have more than tripled over the past six weeks as the coronavirus crisis has upended life in the U.S. They traded at $2.92 on Feb. 18.
More than 9,663 people have died and 337,000 have been infected in the U.S. since the virus began to spread more than two months ago.