Shares in Fluidigm spiked 16% in Friday’s prolonged market session after the corporate’s Covid-19 saliva check was chosen by the Trump Administration to be used in a US federal program at testing websites in Texas.
Waco, Texas, is the primary neighborhood to supply Covid-19 saliva testing by way of the US federal program beginning October 16. The Fluidigm (FLDM) saliva check will likely be supplied at three websites by way of mid-November. Fluidigm’s check that makes use of samples of saliva collected by spitting right into a sterile container, detects SARS-CoV-2, the virus that causes Covid-19, on a molecular degree utilizing a microfluidics platform.
The US federal program gives Covid-19 testing websites for a restricted interval in areas the place there was a latest and vital enhance within the variety of new virus instances and hospitalizations. This system is run by the U.S. Division of Well being and Human Companies (HHS) in partnership with native communities and personal corporations. HHS has shipped 10,000 Fluidigm saliva assessments to pick Waco, Texas websites.
The Fluidigm built-in microfluidics platform used within the saliva check can generate as many as 6,000 check outcomes per day. With many current Fluidigm devices in scientific and analysis labs all through the U.S., the corporate is now increasing its microfluidics manufacturing capability and creating a novel barcoding chemistry to additional increase testing.
As it’s saliva-based, the Advanta Dx SARS-CoV-2 RT-PCR check doesn’t require assortment by way of invasive nasopharyngeal swab. The accuracy of the check is similar to different molecular-level assessments of nasal swab samples, in keeping with outcomes from a scientific examine. Again in August Fluidigm acquired Emergency Use Authorization (EUA) from the U.S. Meals and Drug Administration (FDA) for the saliva check.
Shares in FLDM, which have spiked over 94% year-to-date, are down 13% over the previous 5 days. The inventory scores a cautiously optimistic Reasonable Purchase Road consensus based mostly on 2 latest Purchase rankings. In the meantime the $14 common analyst price target signifies a promising 107% additional upside potential from present ranges.
Piper Sandler’s Steven Mah on the finish of final month reiterated a Purchase score on the inventory with a $12 worth goal (78% upside potential), noting that FLDM “has opportunistically shifted to Covid-19 testing”.
Mah believes that CLIA lab testing and speedy point-of-care (POC) testing can “co-exist with out cannibalizing one another”. The analyst added that he could be a purchaser of Fluidigm given the latest pullback. (See FLDM stock analysis on TipRanks)
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