- Haircare company Cellmid (CDY) has changed tack to join the list of companies dabbling in coronavirus-related business
- The company has signed a supply agreement with a Chinese biotech company to sell a COVID-19 rapid diagnostic kit in Australia
- The kit can diagnose Covid-19 in less than 15 minutes with basic lab equipment
- Moreover, the product is already approved for point-of-care use by the Therapeutic Goods Administration
- Cellmid will commercialise the product in Australia with distribution partner Australia Applications
- Shares in Cellmid more-than-tripled today, closing over 200 per cent higher at 31 cents each
Haircare specialist Cellmid (CDY) has started dabbling in coronavirus-related business and promptly tripled its share price today.
The company has struck a supply deal with Chinese biotech Guangzhou Wondfo Biotech over a COVID-19 rapid diagnostic test kid. With distribution partner Australia Applications, Cellmid will commercialise the product in Australia with a one-year contract locked in.
The test kit in question is a point-of-care test that can diagnose COVID-19 in less than 15 minutes. Moreover, the kit requires only the most basic type of laboratory equipment, making it especially attractive for conducting tests in rural Australia.
According to Cellmid, Covid-19 testing generally requires skilled technicians and can take several hours to produce a result.
Cellmid CEO Maria Halasz said the company is excited to be able to help quell the spread of the pandemic.
“Learning from countries that managed the coronavirus infections well it is clear that widespread COVID-19 testing, isolation of those testing positive and early treatment are the best methods to control the spread of infection while saving lives and medical resources,” Maria said.
The Wondfo test kit was approved as a point-of-care test kit just by the Australian Therapeutic Goods Administration (TGA) last week on March 25. In China, the National Medical Products Administration (NMPA) approved the product in late February, and the device received European CE Mark approval in early March.
The product is available immediately and Cellmid will pay a fixed price for each device.
Cellmid admitted, however, that it has not yet signed any contracts to sell the product in Australia. While the company has placed its first order and Australia Applications has issued its first invoice, no customers are lined up just yet.
Still, Cellmid seems certain demand for the product will be strong, and it seems shareholders agree.
Cellmid announced the news in an aftermarket release on Friday evening. Shares opened today at a massive premium, up as much as 300 per cent immediately after the opening bell sounded.
While they have settled somewhat since then, shares still closed 213.13 per cent higher at 31 cents each — Cellmid’s highest price since December 2018.