SCWorx climbs over 500% as it receives an order for 48 million COVID-19 rapid testing kits

The U.S-based healthcare logistics firm, SCWorx (NASDAQ:WORX), posted a roughly sixfold increase in the stock market on Monday as it announced to have received a massive order for Coronavirus testing kits.

A virtual health care network, Rethink My Healthcare, placed an order for 48 million rapid testing kits for the flu-like virus from SCWorx on Monday. The announcement further highlighted that the healthcare firm plans on delivering the tests over 24 weeks. SCWorx will receive a weekly payment of £27.96 million during this time.

SCWorx Is Known For Its Volatile Swings

Following the announcement, SCWorx immediately caught steam and was last seen trading nearly 500% up in the stock market. The stock had closed at £1.80 per share on Thursday. On Monday, the company recorded a new high of £11.60 per share. Being a nano-cap stock (thinly traded), SCWorx is known for its volatile swings in the stock market.

COVID-19 has so far infected more than 583,000 people in the United States and has caused over 23,400 deaths. The Coronavirus rapid testing kits are in extreme demand across the country to help its health system in providing better and efficient care to the patients.

The rapid spread of the deadly virus has pushed the U.S government into imposing strict measures for social distancing. Trump Administration has also ordered non-essential businesses to temporarily shut down to minimize the risk of fast transmission. Owing to the ongoing health crisis, the majority of experts are seeing the world’s largest economy on the verge of dropping into recession while others see it already in one.

CEO Marc Schessel’s Comment On Monday

CEO Marc Schessel of SCWorx was reported quoting on Monday:

“Widespread testing for COVID-19 disease in the United States is absolutely critical for saving lives and reopening our economy. Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States.”

According to SCWorx, it aims at delivering the 1^st two million diagnostic kits in roughly two weeks. Its rapid testing kits, as per the company, detects if the patient’s whole blood, plasma, serum, or fingertip blood has COVID-19 antibodies.

As of Thursday, SCWorx was around 20% down year to date in the stock market. After Monday’s gains, it is currently trading around 300% up year to date.

At the time of writing, SCWorx has a market cap of £68.18 million.