The price of shares of in vitro diagnostic specialist T2 Biosystems (NASDAQ:TTOO) soared after the company confirmed that its T2SARS-CoV-2 Panel can detect different COVID-19 strains. However, given the COVID-19 diagnostic testing industry’s competitive landscape, will the company be able to maintain its rally? Read on.An invitro diagnostics company, T2 Biosystems, Inc. (TTOO) is involved in the development of diagnostic products in the United States and internationally. TTOO’s stock has gained 12.1% so far this year. The gain is attributable primarily to the company’s T2SARS-CoV-2 Panel, a COVID-19 molecular diagnostic test that can detect the Brazil (P.1) variant of the SARS-CoV-2 virus.
However, TTOO’s shares have declined 5.4% over the past month after the company reported losses in its first quarter financial results. Also, ongoing investigations into TTO related to possible breaches of fiduciary duty could be of concern to investors. In addition, TTOO’s poor profitability, as competition intensifies in the coronavirus diagnostic market, could cause the stock to experience further declines.
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