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.
UK-based firm, Omega Diagnostics (LON: ODX) share price has rallied over 25% on Monday after the company responded to an article published by the Financial Times earlier in the morning that said it is one of three manufacturers selected to make rapid Covid-19 tests.
The Financial Times article stated that the Department of Health has chosen Omega Diagnostics, SureScreen, and Global Access Diagnostics to produce up to 2 million lateral flow tests.
However, Omega responded by saying that while it can confirm it is continuing to modify its Alva-based facility to upscale its lateral flow test production capacity significantly, it will only make an announcement once an agreement has been signed.
Despite the lack of confirmation from Omega, they didn't completely deny the reports, suggesting there has been some discussion regarding a possible agreement with the UK Department of Health.
Investors are certainly taking positives from the news, with Omega’s shares trading at 85.5p up over 21% after initially reaching highs of 91p following the open on Monday.
Should you invest in Omega Diagnostics shares? Omega Diagnostics shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market 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 Omega shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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