Last week, amidst a torrent of COVID-19 news, RichTV Live covered the biotech stocks looking for a cure. While those companies continue to make progress towards a treatment for this deadly virus, another company has made major headway in detecting the virus. That company is Roche Holding AG (OTCQX:RHHBY) (SWX: RO).
A multinational healthcare stock from Switzerland, Roche is the world’s largest biotech company. It operates in both the pharmaceuticals and diagnostics sectors. More than thirty medicines developed by the company are included in the WHO’s list of Essential Medicines.
Today, Rich profiles the company, discusses its exciting news, and breaks down this unique investing opportunity.
US Gives Emergency Authorization to Roche Coronavirus Test
On Friday, March 13, the Food and Drug Administration (FDA) granted Roche Holding an “emergency use authorization” for the first commercial test to detect SARS-CoV-2, the virus that causes COVID-19.
According to the company, the test can screen up to 4,128 patients a day. This will effectively speed up the COVID-19 detection process by “a Factor of 10.”
Since the outbreak began, the US has been criticized for testing its citizens too slowly. Roche’s diagnostic systems, originally launched in 2014, are already available in Europe.
CEO of Roche, Thomas Schinecker, said:
“Providing quality, high-volume testing capabilities will allow us to respond effectively to what the World Health Organization has characterized as a pandemic. It is important to quickly and reliably detect whether a patient is infected with SARS-CoV-2. Over the last weeks, our emergency response teams have been working hard to bring this test to the patients.”
The Effect on RHHBY Stock
“Trump spoke highly of Roche yesterday,” Rich explains. “And the stock surged, as Trump said testing centers will be set up all over America.”
The day of the announcement, RHHBY shot up 17.7%, from $35.66 to a high of $41.98. Today, the share price fell to a more sustainable $38.76, but Rich remains bullish on this stock’s long-term value.
“Put it on full alert, as I expect it to explode this week,” says Rich. “This is one of the biggest stocks in the world that’s going to skyrocket because of the coronavirus.”
The latest statistics reveal 175,754 cases of coronavirus worldwide. This has caused the deaths of 6,716 people. Fortunately, 77,871 have recovered from the virus. With faster testing provided by Roche, the spread of COVID-19 might slow and eventually be halted in the US within the coming weeks.
What do you think? Is RHHBY a good company to invest in? Make sure to always do your own research first! And keep watching RichTV Live for more stock picks.
Featured image: Unsplash © Ani Kolleshi