Shares of IP Group PLC (LON: IPO) rose as much as 30% on Monday after its investee Oxford Nanopore Technologies agreed a deal with the UK Government to roll out its rapid COVID-19 test.
“LamPORE” test is able to detect a novel coronavirus in 90 minutes from a DNA sample. The firm will supply NHS testing laboratories with an initial 450,000 LamPORE SARS-CoV-2 tests. IP Group noted that the current production capacities allow it to make millions of tests each month.
The UK's Department of Health and Social Care (DHSC) noted that LamPORE has the same level of sensitivity as a PCR swab test.
“The roll-out of LamPORE, the company's first diagnostic assay, is a significant development for Oxford Nanopore and in the battle against Covid-19 in the UK. We are proud that Oxford Nanopore has been supplying countries all over the world with sequencing capability throughout this pandemic to help support the response to the crisis,” said IP Group Chief Executive Alan Aubrey.
IP holds a 16% stake in Oxford Nanopore Technologies, which is an Oxford University spin-off. IP Group share price rose 30% earlier this morning before paring back over half of today’s gains to trade at 75p (+12.8%).
This morning’s high of 85.8p is the highest the stock traded since May last year.
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