Aytu Bioscience Inc (NASDAQ: AYTU) went parabolic in yesterday’s session to close the day with gains of 489.08%. This followed the company’s announcement that it had entered into an exclusive distribution agreement for COVID-19 IgG/IgM Rapid test with L.B Resources Limited. The purpose of the test is in professional setups and can deliver clinical results in 2 to 10 minutes. Through this license, Aytu will have the right to distribute the tests all across the United States for 3 years, with the possibility for renewal.

The company announced that the COVID-19 test is a solid phase immunochromatographic assay for the quick and qualitative detection of COVID-19 antibodies. Other features of the test include the facilitation of quick patient treatment decisions, and the use of a small specimen to get the necessary results. The test is also very sensitive and specific.

So far, COVID-19 IgG/IgM rapid test was tested using 113 samples of blood from people showing pneumonia and respiratory symptoms. The samples used were tested using the Orient Gene Diagnostic device and the results compared to RT-PCR. In its evaluation, the rapid test had a sensitivity of 87.9% and a specificity of 100%. It also had a sensitivity of 97.2% when used in the patient convalescence period. 

The company also announced that it was expecting the first shipment of the treatment in about a month. Commenting on the deal, Aytu Bioscience CEO Josh Disbrow stated that the company valued the safety of all Americans in this time of COVID-19.  He added that, the company was happy to work with regulators in making the tests available in the U.S, in the soonest time possible.

From its price action, AYTU was in a breakout. The stock gapped up and opened the day at $1.30. It then traded between a low of $0.91 and a high of $2.99 before closing the day at $2.05. Volumes in the day stood at 184.09 million.

About Aytu Bioscience Inc

Aytu Bioscience Inc is a pharmaceutical company that develops new products for respiratory problems, insomnia and male fertility. It is headquartered in Englewood, Colorado.