Shares of Genedrive PLC (LON: GDR) rallied 30.2% higher fueled by the fear of missing out (FOMO) as investors caught up on the potential in the company’s latest announcement regarding its partnership with Beckman Coulter.
The molecular diagnostics company announced an expanded partnership with Beckman Coulter to distribute its high throughput COVID-19 PCR tests known as the 96 SARS-CoV-2 kits to a minimal reaction from investors last Thursday.
Investors have now realised that Beckman Coulter is part of the Danaher Corporation, an American conglomerate with a global distribution network that it could leverage to scale the distribution of Genedrive’s tests.
Genedrive’s tests can also be combined with Beckman’s high throughput robotic Biomek i7 instrument to process 1,000 PCR samples per workstation over a standard eight-hour day while using the equivalent of half a full-time technician’s work input.
The deal has given Genedrive massive scaling potential in terms of tests done and global reach for the distribution of its COVID-19 test kits, which is what investors have discovered today, hence, the rally.
David Budd, Genedrive’s CEO, said: “We are very pleased to have the partnership of Beckman Coulter in accessing significant COVID testing opportunities throughout the United States and Europe, where the incidence of COVID continues to escalate, and the need for high throughput testing solutions remains a priority,”
Adding:
“The combination of Genedrive and Beckman Coulter products and expertise provides the company with a new, innovative, and competitive solution, and a new sales channel for the American market, which we did not have previously.
Today’s rally has pushed Genedrive’s share price close to the 100p resistance level, and it would be nice to see it break above this crucial level. However, the share price is a bit extended, and I wouldn’t be surprised if it pulled back over the next few days.
Genedrive share price
Genedrive shares surged 30.2% to trade at 97p having rallied from Monday’s closing price of 74.5p.
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