- The stock price of G Medical Innovations Holdings Ltd (NASDAQ: GMVD) increased by 17.33% today. This is why it happened.
The stock price of G Medical Innovations Holdings Ltd (NASDAQ: GMVD) increased by 17.33% today. Investors are responding to a report that Pittsburgh-based McDade Products, LLC partnering with G Medical Tests and Services, a division of G Medical Innovations Holdings Ltd. (NASDAQ: GMVD), to manufacture several million U.S. FDA Emergency Use Authorization (EUA) approved COVID-19 PCR collection test kits available for retailers for sale by the end of January 2022.
McDade Products is now accepting orders for the co-branded LiveNow PCR Collection Kit, which will retail for $9.99. And the diagnostic PCR (polymerase chain reaction) test detects the presence or absence of SARS-CoV2, the virus that causes COVID-19. Users register with the lab online, collect a nasal swab sample at home, and send the sample to G Medical’s CLIA-certified lab with the pre-paid return pack. On average, tests results are expected to be available online within 24 hours from the time the sample is received.
G Medical’s labs were approved by the FDA under the EUA. And currently, G Medical has two CLIA-certified labs; one in Southern California, and the other in North Carolina. In addition, G Medical has launched 6 testing centers in California, with many more planned. G Medical’s labs are capable of being run 24 hours per day 7 days a week, and can each process up to 24,000 COVID tests per hour to meet the current demand.
The first test kit order is for 4 million units. And G Medical will be selling these units wholesale for $3.25 each, reflecting gross profit of $7 million. Plus G Medical expects to be paid an average of $85.00 per test through each patient’s insurance.
According to Grand View Research, the global PCR and real time PCR molecular diagnostics market was valued at over $23.6 billion in 2020 and expected to expand at a CAGR (compound annual growth rate) of 0.9% between 2021 and 2028.
“For decades, we’ve been committed to empowering clinicians and patients to better manage their health outcomes. By partnering with McDade Products, we can make our SARS-CoV2 certified lab testing accessible and convenient for customers and retailers nationwide. With new cases abound, and the world grappling with PCR test shortages there is a tremendous opportunity to provide safety, and relief to the world economy with a significant financial benefit to our shareholders.”
— Dr. Yacov Geva, President and CEO of G Medical Innovations
“As a trusted and established next-generation mobile health and e-health company that provides clinical and consumer medical-grade health monitoring solutions, G Medical Innovations enables us to offer our retail customers with an end-to-end solution to address the national shortage of reliable COVID-19 diagnostic tests.”
— Michael McDade, CEO of McDade Products, LLC
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.