As the world continues to worry about the novel coronavirus
Covid-19 and investors begin to understand the potential impact
this fast-spreading outbreak may have on China’s economy (and, by
extension, the world), Co-Diagnostics Inc. (Nasdaq:CODX), a
Utah-based molecular diagnostics company, recently announced it had
tested and launched its coronavirus test as a tool to help
researchers and scientists slow the spread of infection.
To see why this matters, let’s first take a look at the current
situation: The world’s second largest economy, considered the
“factory of the world,” is teetering. Both the disease and
the containment steps enacted to control it (the quarantining of
more than 50 million people) has had a consequential effect on
businesses across disparate industries and supply chains.
Tech companies such as Apple and manufacturers of electric cars
that rely on components are beginning to worry about production
slow down. Exporters around the world are also feeling the
pinch with demand for luxury items such as Louis Vuitton, Brazilian
beef and French and Chilean wine, all of which are facing a huge
drop in Chinese demand.
What’s even more worrying is that economic consequences of the
virus outside China will actually be delayed, and their
significance are as yet uncertain. Commentators believe that most
effects will be felt in April. Some may well be material and
transitory – lack of certain items on store shelves, for example,
or price increases – but others could be more serious.
Spread of disease and efforts to contain it are among biggest
near-term threats to world growth, say economists. Most
are forecasting that economic growth globally this year will be
reduced by 0.2% to 0.3%, while in the U.S. first quarter growth
could take a 0.2% to 0.4% hit. But some are predicting even
graver consequences.
Nassim Nicholas Taleb, a former options market broker who
mistrusted the "bell-curve" models used by many finance houses to
mitigate risk, was the first to suggest the term “Black Swan,”
which is used to emphasize unpredictable, rare events that have the
potential to deeply affect financial and global economic
systems.
Yes, Brexit and other geopolitical risks such as Iran and trade
wars had put the spectre of recession and economic slowdown on the
global agenda, but China has brought forward the possibility of
such a black swan scenario playing out.
One of the most important factors to mitigate and cushion the
world economy from these risks and get it back on track is the
accessibility of affordable diagnostics testing. Accurate
detection and diagnosis are the first step to combatting the spread
of a disease like this, and to letting people get back to work and
travel freely again; conversely, inaccurate diagnoses lead to
healthy people being misdiagnosed and receiving expensive and
unnecessary care, and to sick people spreading the disease to their
family and friends.
This is one of the reasons that Co-Diagnostics made their Logix
Smart™ 2019-nCoV polymerase chain reaction (PCR) tests immediately
available on a Research Use Only (RUO) basis to thousands of
laboratories throughout the world.
Dwight Egan, Co-Diagnostics CEO had this to say: "We
believe the way that Co-Diagnostics can be most helpful in this
ongoing situation is by providing diagnostic solutions that are
affordable and accessible in any market in the world. Our mandate
includes supporting as many markets as possible in a public health
crisis, and taking a test from design to commercialization in under
three weeks underscores this commitment. Doing so also provides a
compelling proof-of-concept that the Company’s unique process and
patented technology could quickly and efficiently be applied to
address the diagnostic needs associated with other emergencies,
including potential mutations of the coronavirus."
The company has stated that they are already in discussions with
regulatory bodies to gain clearance for use as an IVD, which will
open up more doors in other markets once granted, including sale
within the United States.
Disclosure: Co-Diagnostics Inc is a client of BDA
International.
About BDA International,
Inc.:
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compensation related to this release but its principles hold shares
of client companies in our personal portfolios, including CODX. BDA
International accepts sole responsibility for the content and
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previously unpublished or non-public information. Parties
interested in learning more about the relationship between BDA and
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