RE: Blatently25 Feb 2020 12:56
By David Wagner
Investing.com - If the coronavirus crisis weighs on almost all sectors, we can note some companies whose activity is tailor-made to shine in this kind of situation.
For example, faced with the hope of developing vaccines, several biotechnology companies have indeed posted incredible progress since the start of the year. Suppliers of protective masks are also on the front line.
But there is a French action which undoubtedly benefited more than all the others from the coronavirus. It is the French Novacyt (PA: ALNOV ), which produces medical tests, including one recently launched concerning the coronavirus.
After having started the year at 0.4510 Euros, and therefore under the not very glorious status of "penny stock", the action indeed marked a peak at 2.6750 Euros on February 17, ie an increase of almost 500%.
The company announced on that date that its molecular diagnostic division, Primerdesign, launched its CE-Mark molecular test for the clinical detection of the new coronavirus (COVID-19), stressing that thanks to CE marking, the test can be used directly by laboratories and hospitals to test patients.
Following its peak on February 17, the stock posted a strong correction, but market panic over the spread of the coronavirus outside of China yesterday caused a rebound of 23.26% yesterday, and the stock posted a further increase of 4.40 % today, posting a gain of almost 270% since the start of the year.
If the coronavirus epidemic degenerates into a global pandemic, hundreds of millions of tests could be used, which could largely fuel the rise in the title.
Today alone, South Korea has announced plans to test 200,000 people, and it is expected that this kind of massive operation will escalate as the epidemic spreads outside of China.
Overall, we can therefore expect that, for the moment, the bad news about the coronavirus will remain good news for Novacyt.
Sign In
Follow the stocks
