Key points:
- Virax Biolabs (VRAX) stock price rallied 50% after launching a new test.
- The company launched a new rapid Monkeypox initial screening test.
- Investors cheered the move, as evidenced by the rally higher.
The Virax Biolabs Group Ltd (NASDAQ: VRAX) stock price rallied 50% after launching a Monkeypox Virus Antigen Rapid Test Kit. Investors cheered the news, given that the viral infection’s rapid spread has made the World Health Organization (WHO) declare it a public health emergency of international concern.
The new cases of monkeypox did not originate in West Africa, where the disease is common, but have been recorded in people who travelled to Europe, North America and other African countries outside West Africa.
Also read: The Best Biotech Stocks Under $5 To Buy Right Now.
The WHO has sounded the alarm on the rising cases of Monkeypox in Europe, which Virax Biolabs is likely to benefit from given that its Monkeypox test is sold in countries that allow CE-marked health products and medicines.
Virax Biolabs test kits can be used in point-of-care settings. The tests can help healthcare professionals accurately identify a monkeypox infection in people suspected of carrying the monkeypox virus, with results generated in 15 minutes.
The test can be used as a valuable initial screening test for people exposed to monkeypox-infected patients or in a high-risk environment. The company sells tests directly to users since it has not yet named a distribution partner.
James Foster, Virax’s Chairman and CEO, commented: “I am very proud of our organization’s ability to quickly bring this rapid antigen test kit to market to help combat the monkeypox outbreak. We are working diligently to distribute the kits as well as the previously announced Monkeypox and Varicella Zoster Viruses Real-Time PCR Detection Kits into the hands of healthcare practitioners as quickly as possible.”
So, should you buy Virax Biolabs stock? The short answer is never to chase a stock higher. However, Virax shares are trading just above their recent all-time lows and could be a decent buy for some investors.
*This is not investment advice.
The Virax Biolabs (VRAX) stock price.
The Virax Biolabs (VRAX) stock price rallied 50% to trade at $3.69, rising from Monday’s closing price of $2.46.
