Why Jim Cramer Is Looking Past LabCorp's COVID-19 Emergency Use Authorization

Jim Cramer discusses LabCorp's emergency use authorization from the FDA.
Author:
Publish date:

LabCorp announced on Friday said that it received emergency use authorization from the Food and Drug Administration for a new type of high-speed Covid-19 test.

The Burlington, N.C.-based company said in a statement that the FDA has granted approval for it to roll out the new test, which uses heat and technology to extract RNA from samples collected for Covid-19 molecular testing, according to the company.

LabCorp said its testing methodology, which uses heat to trap viral particles that can be tested for the disease, “… helps improve the speed and efficiency of RT-PCR tests, considered the ‘gold standard’ for active infections."

“We are excited to pioneer and introduce RNA-extraction free methodology in our laboratories, and to the diagnostic community at large,” LabCorp Diagnostics Chief Scientific Officer Marcia Eisenberg said in the statement.

LabCorp already makes short nasal swab Covid-19 tests for at-home collection that provide results in 24 hours.

Separately, LabCorp said it received an FDA EUA for the use of “matrixed pooling” of samples collected with its at-home Covid-19 test collection kits, which will allow the company to test larger groups of samples at one time and also reduce demand on labs that need to process one test at a time.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

Latest Videos From TheStreet and Jim Cramer: