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Investing.com -- Co-Diagnostics Inc (NASDAQ:CODX) stock surged 78.9% on Tuesday after the molecular diagnostics company announced it signed a strategic Memorandum of Understanding (MOU) with a regional manufacturing and distribution company in Saudi Arabia.
The agreement outlines plans to explore a joint venture that would be granted a license to develop, manufacture, and sell Co-Dx intellectual property throughout the Middle East and North Africa (MENA), including the company’s upcoming Co-Dx PCR point-of-care platform.
According to the MOU, the Saudi partner would contribute local operational support, access to infrastructure, personnel, regulatory expertise, and other resources to support the joint venture’s objectives across MENA countries. This arrangement would be similar to Co-Diagnostics’ existing operations in India through its joint venture, CoSara Diagnostics Pvt Ltd.
The company noted that Saudi Arabia has been one of the largest international markets for its Logix Smart tests. The proposed joint venture would align with initiatives outlined in Saudi Arabia’s Vision 2030, potentially making it eligible for applicable government incentives.
"We are pleased to announce this Memorandum to formalize the structure, scope and mission of an anticipated joint venture in KSA, which we believe illustrates our dedication to increasing the accessibility of high-quality PCR diagnostics on a global scale," said Co-Diagnostics CEO Dwight Egan.
The joint venture would focus on both the company’s upcoming Co-Dx PCR platform and its existing suite of lab-based PCR diagnostic products.
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