Over the course of the past week, some stocks have made highly impressive moves, and one of those is American Bio Medica Corporation (OTCMKTS:ABMC). Over the course of the past week, the stock has rallied by as much as 100% and hit its highest level in 52 weeks of $0.52 a share on Tuesday.
Considering the sort of rally it has enjoyed in such a short period of time, it could be a good time for investors to take a closer look at the American Bio stock. In order to have a better idea about the rally, potential investors need to first know about the company’s line of business.
American Bio Medica Corporation is involved in the manufacturing and marketing of cost-effective immunoassay test kits. The kits in question are meant for collecting test meant for drugs that are generally abused. The company has established a global distribution network and seeks to work across a range of markets, starting from workplace and government to educational and correctional. There has not been any recent news with regards to American Bio’s business, but back in March, the company made a major announcement.
The company started offering coronavirus test kits from March 17, and that was in the initial days of the coronavirus pandemic. The company announced that it started offering a cost-effective rapid test that will be able to identify COVID 19 in plasma, blood, or serum.
Considering the huge demand for rapid testing kits due to the spread of the pandemic, it was a timely move from American Bio. According to the company, the test can provide a result in only 2 minutes, and in general, it does not take more than 15 minutes.
While it cannot be denied that it was the right move from a testing kit manufacturer, it should be noted that at the time of the announcement, the kit had not yet been reviewed by the all-important United States Food and Drug Administration. That being said, investors should keep in mind that in light of the unprecedented crisis unleashed by the pandemic, the FDA had, in fact, issued new guidance for such kits on March 16. Hence, the company has been able to offer those kits from March 17.
The testing kit manufactured by American Bio can actually be used to screen asymptomatic or asymptomatic persons quickly and help in tackling the spread of the deadly coronavirus.
More importantly, the kits can actually be deployed in correctional institutes, clinics, and hospitals. Even employers can use it to screen employees. The test has not yet been made available for commercial use, and the company is going to abide by the strident FDA guidelines.
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