G Medical Innovations Holdings Ltd. (GMVD), an early commercial-stage healthcare company, has declined 6.7% during the aftermarket trading session. Consequently, the stock is trading at $5.71 at the time of the writing. The decline could be attributed to the profit-taking factor after the stock went berserk during Wednesday’s regular trading session as it rocketed by 45.37% and closed the day at $6.12. The massive stock movement came after the correction to the press release regarding the acquisition of GMVD shares in the open market.
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Why GMVD Soared?
On Wednesday, McDade Products, LLC and G Medical Tests and Service, a division of G Medical Innovations Holdings Ltd. announced a correction to the press release issued on 14th of January 2022. The release said that an undisclosed number of shares of the company were acquired in the open market by the CEO of McDade Products, LLC, Michael McDade, and President and CEO of G Medical Innovations, Dr. Yacov Geva. The correction notice said that both Mr. McDade and Dr. Geva intend to acquire GMVD stock in the open market during the next available trading window, after the announcement. As soon as the news came out, the stock started making headwinds and surged 45.37% during mid-day.
Purchase Order for PCR Tests Kits
On the 12th of January, McDade Products, LLC, the division of GMVD announced an additional $6.5 million purchase order for 2 million COVID-19 PCR collection test kits. The company intended to sell those units wholesale for $3.25 each. That, in turn, reflected a gross profit of about $3.5 million. Alongside that, the company also expected to get paid an average of $85.00 per test through each patient’s insurance. The orders came at a moment when the Biden Administration announced that private insurers were to pay for a minimum of eight COVID 19 test kits per person per month.
McDade Partnership with G Medical Tests and Services
In early January, McDade Products, LLC announced that it had partnered with a division of GMVD, G Medical Tests and Services, for manufacturing millions of U.S. FDA Emergency Use Authorization (EUA) approved COVID-19 PCR collection test kits. The kits were to be available for sale to retailers by the end of the month. The first kit order is 4 million units.
Future Outlook for GMVD
During the last month, GMVD stock has surged by an astounding 215%, primarily owing to the positive developments associated with the business profile of the company during the said period. Looking ahead, estimates suggest that the stock is well placed to follow a similar trajectory in upcoming months.