New York City, Feb. 18, 2020 (GLOBE NEWSWIRE) -- 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.
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