We have started to see spikes in Covid-19 cases in Canada, the UK, Germany, Spain, and France over the past two weeks. Temperatures are falling again in the northern hemisphere and cold & flu season is waiting on deck. The combination is not encouraging, especially since experts have recently come out and stated that a viable vaccine is still months away, and possibly won’t be widely available to the general public until next summer.
In other words, pandemic testing, PPE, and coping treatment strategies are set to remain our first and most valuable lines of defense through the entire winter season even as case numbers pick back up.
For investors, that suggests a heightened potential for portfolio volatility, and it may also mean a premium set to go to stocks positioned for success under those conditions.
As such, we take a look at a few names that may see increasing attention as a result, including: Co-Diagnostics, Inc. (NASDAQ: CODX), Allstar Health Brands Inc. (OTC PINK: ALST), and Sorrento Therapeutics Inc. (NASDAQ: SRNE).
Co-Diagnostics, Inc. (NASDAQ: CODX) develops, manufactures and markets a state-of-the-art diagnostics technology. The Company’s technology is utilized for tests that are designed using the detection and/or analysis of nucleic acid molecules (DNA or RNA). The Company also uses its proprietary technology to design specific tests to locate genetic markers for use in industries other than infectious disease and license the use of those tests to specific customers.
The company intends to manufacture and sell reagents used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules. It also intends to sell diagnostic equipment from other manufacturers as self-contained lab systems.
Co-Diagnostics, Inc. (NASDAQ: CODX) recently announced that its Logix Smart™ ABC Test (Influenza A/Influenza B/COVID-19) is anticipated to be ready for launch to US CLIA laboratory customers the first week of October 2020.
“Co-Diagnostics is committed to participating in the fight against COVID-19 through the development and manufacture of vital diagnostic testing solutions, with none perhaps as important as this upcoming ABC multiplex test,” remarked Dwight Egan, CEO of Co-Diagnostics. “Our patented CoPrimer™ technology platform is ideally suited for multiplex reactions by substantially reducing ‘primer-dimers,’ a phenomenon in PCR molecular tests that results in false positive results. At a time when the need for accurate detection of COVID-19 as well as the differentiation between strains of the flu has never been greater, we are pleased to be able to contribute to the safety and well-being of communities across the country and around the world.”
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Shares of the stock have powered higher over the past month, rallying roughly 29% in that time on strong overall action.
Co-Diagnostics Inc (NASDAQ: CODX) managed to rope in revenues totaling $24M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 38942.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($18.6M against $3M).
Allstar Health Brands Inc (OTC PINK: ALST) bills itself as a specialty pharmaceutical and nutritional supplements company. One of its core assets at this point is its partnership with TPT Global Tech, a technology and solutions company. The two companies are collaborating to create and distribute the QuickLAB module, a rapid testing solution for Covid-19.
Testing is going to be a huge piece of the puzzle over coming weeks and months as cold and flu season emerges to potentially coincide with the second wave of the pandemic. The two companies had already recently signed an agreement for Mexico and other Latin American countries through TPT Global Tech’s partner New Orbit Technologies. Now, they have signed an expanded agreement to bring QuickLAB distribution to Canada and US to add to the existing Non-Exclusive Distribution Agreement for Mexico and other Latin American countries.
“We are very pleased to announce the expansion of our initial non-exclusive partnership agreement to now include Canada and the US. AllStar Health Brands’ goal is to work with TPT Medtech for both the geographic expansion of the QuikLAB modules within the US and Canada and also offer the best testing technologies within the QuikLAB modules. Both companies have a shared vision to make one-stop, mass testing for Covid-19, a near-term reality in the Americas,” stated Dr. Daniel Bagi, President of AllStar.
According to the release, AllStar believes that given the high Covid-19 infection rates around the world, and the ability to set up the QuikLAB testing modules at almost any location, the QuikLAB option may be part of the solution in combating the effects of this pandemic. The company notes that the QuikLAB testing modules offer a fast, complete testing option, at a rapid throughput, – up to 50 tests/hour, using either the PCR or antibody tests or both currently available on the market.
The goal is to provide results within minutes to a few short hours, so appropriate treatment or isolation protocols can be recommended based on the results of the testing.
ALST is surely a more speculative name on this list. But with the company’s recent expansion and partnership, it may also be the most underpriced.
Sorrento Therapeutics Inc. (NASDAQ: SRNE) trumpets itself as a clinical stage, antibody-centric, biopharmaceutical company developing new therapies to treat cancers.
Sorrento’s multimodal, multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as fully human antibodies (“G-MAB™ library”), clinical stage immuno-cellular therapies (“CAR-T”, “DAR-T”), antibody-drug conjugates (“ADCs”), and clinical stage oncolytic virus (“Seprehvir®”, “Seprehvec™”). Sorrento is also developing potential antiviral therapies and vaccines against coronaviruses, including COVIDTRAP™, ACE-MAB™, COVI-MAB™, COVI-GUARD™, COVI-SHIELD™ and T-VIVA-19™; and diagnostic test solutions, including COVI-TRACK™, COVI-STIX™ and COVI-TRACE™.
Sorrento Therapeutics Inc (NASDAQ: SRNE), along with ViralClear Pharmaceuticals, Inc. (Nasdaq BSGM), just announced that the companies are exploring the synergistic potential of small molecules and antibodies combination therapies against COVID-19.
According to the release, in general, multi-modal approaches are considered the most likely to succeed anti-viral strategies. Even with highly effective stand-alone therapies, a synergistic combination can be pursued to help reduce the effective dose needed of each individual agent and aim to ensure maximum effect.
And the stock has been acting well over recent days, up something like 16% in that time. Shares of the stock have powered higher over the past month, rallying roughly 46% in that time on strong overall action.
Sorrento Therapeutics Inc (NASDAQ: SRNE) managed to rope in revenues totaling $9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 39.1%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($24.4M against $91.3M, respectively).