COVID-19 News Service

A Small Healthcare Firm’s Stock Jumps By 400% Thanks To An Order For 48mn COVID-19 Tests

Logistics companies are an essential part of the global economy, especially now, with supplies needed to help respond and fight back against the COVID-19 outbreak; companies like Titan Transline see business delivering important supplies to people in dire need of them.

One company, SCWorx, is realizing how in demand logistics is now, as they recently had their stocks increase by nearly fivefold early April, following an order for COVID-19 tests.

Virtual healthcare network Rethink My Healthcare recently placed an order to purchase 48 million COVID-19 rapid testing kits from SCWorx, which resulted in the latter company’s boom. The logistics company will be supplying the order over a 24-week time span at about $35mn per week.

SCWorx’s stock shot up by 396% when they announced the news, going up from $2.25 at April 7, to $11.35 at April 13. The company, notably, is a thinly traded nano-cap stock, which means that it is highly sensitive to swings in the market.

The news comes in the midst of the COVID-19 pandemic, which has upended the global economy, with the US being no exception, and thrown a lot of markets in for a loop. The logistics industry hasn’t been hit as hard, thanks in no small part to the necessity of ensuring supplies continue to reach the people that need them; with companies like Titan Transline being called to keep things in flow.

As for the US, more and more people and organizations are calling for testing for COVID-19, in response to the government considering the future reopening of the economy, which has been hit significantly thanks to strict social distancing, which included the banning of all nonessential businesses. A lot of economists are saying that the US is all but guaranteed to fall into a recession, if it’s not already in the middle of one.

SCWorx Marc Schessel says that widespread COVID-19 testing in the US is imperative if they want to save lives, and, later down the road, reopen the economy. Their order from Rethink My Healthcare, he says, will do much to increase the availability of rapid-test kits in the country.

According to the company, they expect to receive the first 2 million rapid detection kits within the first 2 weeks of April. The tests, they report, tests for COVID-19 antibodies in blood, serum, plasma, and fingertip blood.