Happiness Biotech Skyrockets 31% on Breakthrough in Covid-19 Testing Kits
The Chinese nutraceutical and dietary supplements producer will submit a certification application to the CDFA next week.
The stock in Happiness Biotech Group Ltd. skyrocketed 31% to $3.32 per American depositary share by midday Wednesday after the company's announcement that it has had a breakthrough in its effort to develop a Covid-19 testing kits with Fuzhou University.
Instead of using nucleic acid detection method, which takes 5-6 hours on average, the Nanping-based nutraceutical and dietary supplements producer said in a statement today that it has developed a "gold testing kit" by turning to an antibody technique. In the past two months, Happiness Biotech has been working on a way to develop a more affordable testing kit.
Not only is cost lower, but the antibody method improves the success rate of detection and narrows the time to 10-15 minutes when compared to the nucleic acid technique, according to the company. Xuezhu Wang, the chief executive officer of the Happiness Biotech said that the company is set to submit a certification application to the China Food and Drug Administration (CDFA) next week and expects to receive approval soon.
"We also plan to apply for CE certification in Europe and FDA certification in the United States. We are very grateful to the experts of Fuzhou University and the staff of our biochemical laboratory for their hard work," Wang said in a statement today.
He added, "At present, the company has begun to transform the production workshop to prepare for mass production. We believe that through the efforts of companies like us, people all over the world will be able to use more efficient and affordable Covid-19 testing kits in the near future."
Despite two positive consecutive months in January and February from generating strong revenues for its nutritional product that improves body resistance and soaring online sales, Wall Street hasn't been too kind to Happiness Biotech.
Last week, Happiness Biotech watched its stock tumble to $2.44 per share, marking the lowest point its seen since becoming publicly traded company in October 2019. Before last week, Happiness hadn't traded under $3.40 per share.
Established in 2018, Happiness conducts its business mainly through its wholly-owned subsidiary, Fujian Happiness. According to Happiness, it has a product portfolio that includes 32 types of nutraceutical and dietary supplements.
If Happiness Biotech's new "gold testing kit" represents a real breakthrough in accuracy and affordability, this Happiness might just be the virus-fighting penny stock savvy investors have been searching for.