Will these testing kits soar on second wave fear?
Three testing kit companies on my radar are Co-Diagnostics (NASDAQ:CODX), Quidel (NASDAQ:QDEL), and ScWorx (NASDAQ: WORX). A big reason why the virus spread was because of inaccurate testing and a sense of unpreparedness. Now, if a second wave does arise, testing will go through the roof. However, valid testing kits are the key to success in this area of the COVID-19 market.
The FDA endorsed their COVID-19 saliva testing (Logicsmart) back in April. Since they began selling in Mexico and India. Considering India is suffering big time, CODX sales could skyrocket. However, Larry Ramer from Investor Place said the Logic Smart test could not be as accurate as other testing kits manufactured by competitors. Could it be an issue on whether countries continue using their testing kit?
Quidel develops rapid testing kits solutions. People can find out whether they test positive or negative to the virus in 15 minutes with Quidel's testing kit 'Sofia'. Quidel currently has over 1000 sites contracted for distribution. They also aim to ship every single testing kit they manage in the foreseeable future. Thus, providing a positive outlook for June financials.
ScWorx exploded in April after reporting a million-dollar order for testing kits. However, a class action lawsuit is staining their reputation. The lawsuit is questioning whether ScWorx fabricated and misrepresented information to its investors in the testing kit order. We could see ScWorx plummet. However, if WORX wins the lawsuit and COVID-19 is still affecting the world, they could come back to centre stage.
What is everyone else's thoughts on CODX, ScWorx, and Quidel as COVID-19 investments? I'm going with Quidel for now.