FLDM Stock Price: Fluidigm Corporation plummets after rival company creates game-changing COVID-19 test

NASDAQ:FLDM drops by 26.51% on Thursday just one day after surging 35%.
Industry rival Abbott Laboratories received FDA emergency use authorization for its rapid COVID-19 test.

NASDAQ:FLDM has plunged back down just as quickly as it rose on Wednesday after industry rival Abbott Laboratories (NYSE:ABT) dashed the hopes of Fluidigm investors with its ground-breaking new coronavirus test. After a 35% rise in price, shares of Fluidigm fell off a cliff on Thursday, losing 26.51% to close the trading session at $8.40. The stock is still trading above the 50-day and 200-day moving averages and with an analyst mean target price of $12.67 – Fluidigm still has some potential upside even after Thursday’s colossal drop.

Fluidigm was just 24 hours removed from its own saliva-based coronavirus testing kit receiving FDA emergency use authorization. That was the reason for its major pop on Wednesday. However, the news of Abbott’s test also receiving FDA approval – investors flocked to the test with more promise of being mass-utilized. The first thing to note about the rival’s probe is the price – each test kit will cost only $5. Abbott claims results can be provided within 15 minutes and are 97%. Even more impressive is that the offer comes with a downloadable mobile app that can show the person’s test results – acting as what Abbott calls a “digital health pass” that people can show to prove they are healthy.

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Although Abbott seems to be the first out of the door, there still may be a market for Fluidigm’s saliva tests. A portion of the population would likely prefer a saliva test to the deep nasal swab that is still required for Abbott’s version. No matter how one looks at it, Abbott’s move is a huge blow to Fluidigm’s aspirations of being the preferred coronavirus test used in America – and investors should temper expectations for future growth.

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