SCWorx Skyrockets After Saying It Has Orders for 2 Million Coronavirus Testing Kits

SCWorx is selling the kits to a virtual healthcare network with a 'provision' for additional weekly orders of 2 million kits for 23 weeks.
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Shares of SCWorx Corp.  (WORX) - Get Report skyrocketed Monday, after the healthcare software company announced it has received a committed purchase order from Rethink My Healthcare, a U.S.-based virtual healthcare network, for 2 million coronavirus testing kits.

The company said the agreement includes a “provision" for additional weekly orders of 2 million units for 23 weeks, valued at $35 million per week.

SCWorx will supply Rethink My Healthcare with IgM/IgG Rapid Detection Kits. SCWorx said it expects to receive the first 2 million rapid detection kits within approximately two weeks.

The IgM/IgG Rapid Test is an in-vitro diagnostic test solely for the qualitative determination of Covid-19’s IgM and IgG antibodies in human whole blood, serum, plasma and fingertip blood, the company said in statement.

On March 27, SCWorx announced it had sent 1 million surgical masks to an existing large hospital customer for $390,000, “with additional potential agreements to help hospitals source urgently needed personal protective equipment anticipated,” according to a company statement that day.

“Widespread testing for Covid-19 disease in the United States is absolutely critical for saving lives and reopening our economy,” said Marc Schessel, CEO of SCWorx, in a statement Monday. “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States. Additional purchase orders currently under negotiation with certain other parties could further increase the U.S. supply of these important tests in the near term.”

SCWorx shares closed up $9.73, or 425%, at $12.02.  The stock had dropped 26% for the three months of the year through Thursday. 

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