Abbott Laboratories stock is lighting up the market this week. However, where did this spike come from? The health care and medical device company has received emergency FDA approval on their 5-minute coronavirus test.

Abbott Laboratories (NYSE:ABT) made the announcement on Friday, March 27th and the stock market responded quickly. The company will begin to ramp up production on their groundbreaking test, which makes their stock one to watch during the pandemic.

Abbott Laboratories stock heats up

Why is Abbott Laboratories Stock Gaining So Much Traction?

Is this the first time you are hearing about Abbott Labs? If so, it will not be the last. The Illinois-based company is taking a leading role in the fight against COVID-19.

The Food and Drug Administration gave the company an emergency use authorization (EUA) for its point-of-care test. The FDA will utilize EUA’s on many occasions during the pandemic. The news hit late Friday evening and Abbott’s release gained massive attention and praise on social media.

What does this mean for Abbott? They now have the capability to mass produce their second coronavirus test. Moreover, this test produces results in just five minutes.

It’s a nasal swab test that runs on Abbott’s point-of-care ID NOW platform. The ID NOW is a portable instrument that “brings rapid testing to the front lines,” according to the press release. The company expects to produce upwards of 5 million tests per month while delivering 50,000 tests per day.

Abbott Laboratories stock sat at $74.58 per share Friday morning. After the news made its rounds over the weekend, the stock price opened Monday at $82.86.

Time to Invest in ABT Stock?

Is now the time to invest in Abbott Labs? For starters, they have the capability to manufacture tests as well as anyone. Moreover, they are well ahead of most competitors. Test results can be available in as little as five minutes. Negative results can be detected in 13 minutes.

“The COVID-19 pandemic will be fought on multiple fronts, and a portable molecular test that offers results in minutes adds to the broad range of diagnostic solutions needed to combat this virus,” Abbott CEO Robert Ford said in the news release. “With rapid testing on ID NOW, healthcare providers can perform molecular point-of-care testing outside the traditional four walls of a hospital in outbreak hotspots.”

Abbott has been a healthcare leader in diagnostics and medical devices for some time. However, they aren’t the only company producing groundbreaking coronavirus testing.

Biomerica, Inc. (Nasdaq: BMRA) has a portable test that may cost as low as $10 per patient. It also produces results in just 10 minutes. This is why BMRA stock is also rising as of late.

Biomerica isn’t on the same level as Abbott Labs. Their stock trades below $10 a share currently, but it’s still one to watch during the COVID-19 pandemic.

Abbott Laboratories stock, on the other hand, has been a market hit for quite some time. The latest news will only help them going forward. And yes, a little competition never hurt.

Biotech Stocks on Watch

The best biotech stocks will be those that lead the battle against coronavirus. Over the next few months, innovation will come from all corners of the market. This can lead to massive gains that you will not want to miss out on.

Therefore, sign up for our daily e-letter below. Our Investment U experts provide up-to-date tips and trends within the stock market during the coronavirus outbreak. The next big investment opportunity is well within your grasp.

Testing is the first step to gaining a full understand of how severe this outbreak is and can be in the United States. This is why I suggest keeping a close eye on Abbott Laboratories stock over the next few weeks.