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- SCWorx, a thinly traded company, announced Monday that a healthcare network committed to buying 48 million COVID-19 rapid testing kits from it over 24 weeks.
- Shares of the company surged as much as 396% on the news.
- “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States,” Marc Schessel, CEO of SCWorx, said in a statement.
- Watch SCWorx trade live on Markets Insider.
- Read more on Business Insider.
Shares of SCWorx, a small healthcare logistics company, increased nearly fivefold Monday after it received a large order for COVID-19 tests.
Rethink My Healthcare, a virtual healthcare network, has committed to purchase 48 million COVID-19 rapid testing kits from SCWorx, the company announced Monday. The tests will be supplied over 24 weeks at about $35 million per week, according to a statement.
SCWorx surged as much as 396% on the news, jumping from $2.25 at Thursday’s close to as high as $11.35 Monday. The company is a thinly traded nano-cap stock, meaning it is highly susceptible to volatile swings.
The news comes amid the coronavirus pandemic, which has roiled the US economy and sent markets into a tailspin. Calls for testing for COVID-19, the illness caused by the virus, have increased as US officials weigh the future reopening of the economy.
The US economy has been significantly slowed because of strict social distancing measures to curb the spread of the disease, including bans of nonessential businesses. Most economists now expect the US will fall into a recession if it isn’t already in one.
“Widespread testing for COVID-19 disease in the United States is absolutely critical for saving lives and reopening our economy,” Marc Schessel, CEO of SCWorx, said in a statement. “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States.”
SCWorx expects to receive the first 2 million rapid detection kits in approximately two weeks. The test detects the presence of COVID-19 antibodies in human whole blood, serum, plasma, and fingertip blood, according to the company.
SCWorx has declined about 20% year-to-date through Thursday’s close. With Monday’s gains, it is up 295% year-to-date.
Markets Insider
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