ABT Stock Price: Abbott Laboratories to surge after FDA approval of “game-changing” coronavirus test

A game-changer in fighting coronavirus – and this time it is not a vaccine or a cure, but a rapid test coming from a well-established company. Abbott Laboratories (NYSE: ABT) may now begin selling its Aboott BinaxNow COVID-19 Ag Card Test. The Food and Drug Administration (FDA) has given its emergency authorization, allowing mass production of the test.

Abbott expects to manufacture around ten million units in September, 50 million in October, and continue ramping up output later on. The Chicago-based firm – which is in businesses since the 19th century – said that results of the test are out after 15 minutes – far faster than the standard PCR ones.

Abbott Laboratories also said that the tests have a demonstrated sensitivity of 97.1% and specificity of 98.5% in a clinical study. The tests are also cheap – only $5, and do not necessitate any labs or instruments.

Using such rapid tests could help capture asymptomatic COVID-19 carriers and isolate them before they infect others. Moreover, it could allow a quick resumption of normal life. Air passengers can undergo these quick tests, assuring with a high degree of certainty that no coronavirus-carrying patient is on board. 

Overall, the product is promising.

ABT Stock Dividend

NYSE: ABT is changing hands at over $112 in pre-market trading on Thursday, an increase of nearly 10%. It is critical to note that Abbott Laboratories is a large pharmaceutical firm worth over $180 billion, and such a move is substantial. 

Moreover, sales of BinaxNOW could boost income and the bottom line, leading to a higher dividend. The mere prospects of topping its 2019 revenue of $31.9 billion could also trigger an increase in Abbott's payout to shareholders.