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- SCWorx, a thinly traded company, announced Monday that a healthcare network committed to buying 48 million COVID-19 rapid testing kits from it over 24 weeks.
- Shares of the company spiked 425% in a single day on the news.
- “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States,” Marc Schessel, CEO of SCWorx, said in a statement.
- Watch SCWorx trade live on Markets Insider.
- Read more on Business Insider.
Shares of SCWorx, a small healthcare logistics company, increased nearly fivefold Monday after it received a large order for COVID-19 tests.
About healthcare
Health care, health-care, or healthcare is the maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.
Health care is delivered by health professionals in allied health fields. Physicians and physician associates are a part of these health professionals. Dentistry, pharmacy, midwifery, nursing, medicine, optometry, audiology, psychology, occupational therapy, physical therapy, athletic training and other health professions are all part of health care. It includes work done in providing primary care, secondary care, and tertiary care, as well as in public health.
Access to health care may vary across countries, communities, and individuals, influenced by social and economic conditions as well as health policies. Providing health care services means “the timely use of personal health services to achieve the best possible health outcomes”.
Factors to consider in terms of healthcare access include financial limitations (such as insurance coverage), geographic barriers (such as additional transportation costs, possibility to take paid time off of work to use such services), and personal limitations (lack of ability to communicate with healthcare providers, poor health literacy, low income). Limitations to health care services affects negatively the use of medical services, the efficacy of treatments, and overall outcome (well-being, mortality rates).
Health care systems are organizations established to meet the health needs of targeted populations. According to the World Health Organization (WHO), a well-functioning health care system requires a financing mechanism, a well-trained and adequately paid workforce, reliable information on which to base decisions and policies, and well maintained health facilities to deliver quality medicines and technologies.
An efficient health care system can contribute to a significant part of a country’s economy, development and industrialization. Health care is conventionally regarded as an important determinant in promoting the general physical and mental health and well-being of people around the world. An example of this was the worldwide eradication of smallpox in 1980, declared by the WHO as the first disease in human history to be completely eliminated by deliberate health care interventions.
A tiny healthcare logistics firm skyrockets 425% after getting an …
About logistics
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.
The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. The logistics of physical items usually involves the integration of information flow, materials handling, production, packaging, inventory, transportation, warehousing, and often security.
In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless.
Military logistics was already practiced in the ancient world and as the modern military has a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed.
Logistics management is the part of supply chain management and supply chain engineering that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and point of consumption to meet customer’s requirements.
The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.
Rethink My Healthcare, a virtual healthcare network, has committed to purchase 48 million COVID-19 rapid testing kits from SCWorx, the company announced Monday. The tests will be supplied over 24 weeks at about $35 million per week, according to a statement.
SCWorx surged 425% on the news, jumping from $2.25 last Thursday to $12.02 at Monday’s close. The company is a thinly traded nano-cap stock, meaning it is highly susceptible to volatile swings.
A tiny healthcare logistics firm skyrockets 425% after getting an …
The news comes amid the coronavirus pandemic, which has roiled the US economy and sent markets into a tailspin. Calls for testing for COVID-19, the illness caused by the virus, have increased as US officials weigh the future reopening of the economy.
Read more: Morningstar pinpoints 32 undervalued stocks to buy right now and provides its analysts’ best ideas for each sector
The US economy has been significantly slowed because of strict social distancing measures to curb the spread of the disease, including bans of nonessential businesses. Most economists now expect the US will fall into a recession if it isn’t already in one.
“Widespread testing for COVID-19 disease in the United States is absolutely critical for saving lives and reopening our economy,” Marc Schessel, CEO of SCWorx, said in a statement. “Our substantial purchase order from Rethink My Healthcare will significantly increase the availability of rapid-test kits in the United States.”
SCWorx expects to receive the first 2 million rapid detection kits in approximately two weeks. The test detects the presence of COVID-19 antibodies in human whole blood, serum, plasma, and fingertip blood, according to the company.
SCWorx has declined about 20% year-to-date through Thursday’s close. With Monday’s gains, it is up 295% year-to-date.
Read more: Billionaire Chamath Palihapitiya has reaped a 997% return since 2011. He shares his 3-part strategy for today’s coronavirus-hit market — and outlines how he’s mining real estate for opportunities.
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