Abingdon Health's (LON: ABDX) share price is rallying Monday after a report over the weekend revealed that the company will manufacture the KnowNow Covid saliva test.
While Abingdon has not made an official announcement, the Daily Mail article said the KnowNow test can detect the virus from a saliva swab and is set to be rolled out in the UK.
The report said UK-based health firm Vatic Health Limited has signed a supply agreement with Abingdon Health where they hope to roll out up to 100 million of the tests every year.
Abingdon Health CEO, Chris Yates, was quoted as saying the company is “delighted to be working with Vatic on the technology transfer of their cutting edge Covid-19 test into Abingdon Health and to have secured this long-term manufacturing arrangement.”
The news has seen Abingdon Health shares surge 40% to 58.2p.
While there has been a lack of announcement regarding the deal with Vatic, Abingdon announced on Monday that it has launched a score-card product available alongside the AbC-19 rapid test, which gives a semi-quantitative result to determine the strength of antibody response and possible immunity.
Commenting on the score-card product, Yates said: “The launch of the semi-quantitative accessory to AbC-19 is an important addition to the tools available to researchers as they qualify and measure the antibody level appropriate to infer protective immunity.”
Abingdon Health shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ABDX shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.