Shares of T2 Biosystems (NASDAQ: TTOO) are soaring through the roof on Tuesday, after the company announced good news regarding its T2SARS-CoV-2 Panel, a test kit that can detect the SARS-CoV-2 virus that causes COVID-19. The diagnostic test maker’s stock is up by 15.9% as of 11:49 a.m. EST, after jumping by as much as 38.8% earlier in the day.
There have been new variants of the SARS-CoV-2 virus discovered in countries such as the U.K., South Africa, and the U.S. These variants present a challenge to our strategy to end the pandemic: It isn’t clear whether existing diagnostic tests can detect them, nor do we know with certainty whether the vaccines that have been approved for COVID-19 will be effective against them.
Fortunately, T2 Biosystems claims that its T2SARS-CoV-2 Panel can in fact detect these mutated strains of the virus. The test was first granted emergency use authorization by the U.S. Food and Drug Administration in August after it had demonstrated 100% specificity and 95% clinical sensitivity.