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Abbott surges 11% after FDA approval of 5-minute coronavirus test

Carmen Reinicke   

Abbott surges 11% after FDA approval of 5-minute coronavirus test
Stock Market1 min read

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Shares of Abbott Laboratories jumped as much as 11% in premarket trading Monday after the US Food and Drug Administration on Friday granted Emergency Use Authorization of a COVID-19 test that delivers results in minutes.

Abbott's test, called the ID NOW COVID-19, is also used to test other viruses including Influenza A&B, Strep A, and respiratory syncytial virus (RSV) testing. The test yields positive results in five minutes and negative results in 13 minutes, according to a press release.

The company also announced that it will ramp up production of the testing unit and expects to deliver 50,000 COVID-19 tests per day to healthcare professionals. Tests will be available starting April 1, an Abbott spokesperson told Business Insider's Paulina Cachero.

Read more: 200-plus money managers pay thousands to see what stocks are on Jim Osman's buy list. Here are 3 he says are set to soar 'at least 50%' from their coronavirus-stricken levels.

New ways to rapidly test for COVID-19 come as the US grapples with the coronavirus outbreak, which has now infected more than 735,500 people around the world and killed nearly 35,000.

"Testing remains a crucial step in controlling the novel COVID-19 pandemic," the company said in a press release. "Continuing to supply healthcare providers with new technologies to help curb the spread of infection is a top priority for public health officials and healthcare providers."

Abbott Laboratories has shed roughly 14% year-to-date through Friday's close.

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Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.


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