There’s been no shortage of biotech stocks to cover these past few weeks. Rich has extensively covered the companies currently working on a treatment, vaccine, or cure for COVID-19. Today, he profiles Aytu BioScience Inc (NASDAQ:AYTU), which has developed a new coronavirus testing method.
Headquartered in Colorado, Aytu BioScience is a commercial-stage specialty pharmaceutical company. It commercializes novel products that address significant medical needs, which makes it a perfect COVID-19 stock.
Today, Rich breaks down AYTU’s big news, and how that will affect the stock.
Aytu BioScience to Distribute COVID-19 Test Kit
Two weeks ago, Aytu signed an agreement to commercialize “a clinically validated and commercially used” test to detect the novel coronavirus. This test takes between two and 10 minutes to detect the virus in patients. This means that healthcare officials would no longer have to wait days before they can begin quarantining and treating a patient.
Before this, AYTU was hovering around $0.35. When this news was announced, AYTU skyrocketed to $2.05, rising nearly 500%. Since then, it fell back down to $1.36, but Rich predicts that the stock’s true value is yet to come.
“I think that these guys can fly. They can go much higher because the US is focused on coronavirus test kits,” he says.
Well, COVID-19 stock watchers didn’t have to wait long for Rich’s prediction to come true. Today, Aytu BioScience announced that it has received confirmation from the FDA to begin distributing its coronavirus test throughout the United States.
The company plans to deliver its first shipment of 100,000 tests within the week. It remains in discussion with healthcare institutions and government agencies to quickly aid the supply chain.
AYTU’s Performance and Fiscal Report
Aytu BioScience shares have gained 37.5% on its recent news, rising from $1.36 to $1.87. This puts the stock up 79.8% for the year-to-date.
As with Inovio Pharmaceuticals (NASDAQ:INO), AYTU represents a biotech stock that’s captured the investing world’s attention thanks to its efforts to combat COVID-19. Whether the stock remains high after the crisis is over remains to be seen, so let’s take a look at some of its recent financials.
According to the company’s Q2 fiscal report, Aytu generated revenue of $3.2 million for the period ending December 31, 2019. This represents a strong year-over-year increase of 77%. It also reported a conservative net loss of $0.2 million for the period. This is a reduction of 95% compared with the net loss from Q2 last year.
Clearly, AYTU is on the path to profitability, and its COVID-19 test will likely boost the stock further as the outbreak develops.
What do you think? Is Aytu BioScience a good play right now? Keep watching RichTV Live for more stock news and analysis.
Featured image: DepositPhotos © stevanovicigor