Abbott’s stock jumps 9% following authorization of its rapid $5 COVID-19 test

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Shares of Abbott Laboratories gained 9.1% in premarket trading on Thursday, the day after the company had announced regulatory authorization for a new COVID-19 test that costs $5, does not require instrumentation, and can produce a result in 15 minutes. The test is of particular interest given that there are wait times of days or sometimes weeks to receive a COVID-19 test result. Abbott said the test must be performed by a health care professional in a point-of-care setting; however, people who receive the test can download a new free mobile app that will provide a verifiable test result that includes the date the test was performed. Abbott said the display of results is similar to a digital boarding pass used by airlines. “Just as interest in COVID-19 testing seemed to be waning, Abbott once again answers, the bell” Raymond James’ Jayson Bedford told investors on Thursday. “The timing of this [emergency use authorization] is a positive surprise, as is the price, accuracy, and capacity.” The diagnostics maker has developed and launched six COVID-19 diagnostic and antibody tests during the pandemic. Its stock is up 18.8% year-to-date, while the S&P 500 has gained 7.6%.
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