Why the Genetic Signatures (ASX:GSS) share price is rocketing 25% higher

The Genetic Signatures Ltd (ASX:GSS) share price is rocketing 25% higher on Wednesday. Here's why its shares are on fire…

| More on:
Rocket launching into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Genetic Signatures Ltd (ASX: GSS) share price is rocketing higher on Wednesday after the release of an announcement.

In afternoon trade the specialist molecular diagnostics company's shares are up almost 25% to $2.12.

Why is the Genetic Signatures share price rocketing higher?

Investors have been fighting to get hold of the company's shares this afternoon after it announced a major new customer win.

According to the release, the company has signed a deal with Boston Medical Center (BMC) of Boston, Massachusetts, to supply EasyScreen SARS-CoV-2 Detection Kits.

Management notes that the new supply agreement will provide BMC with an expanded testing capability and that it has been signed during a particularly challenging phase of the COVID-19 pandemic in the US.

The release explains that its target volumes are for 1,000 patient samples per day over the next two years. Though, there is no minimum purchase quantity. In addition to this, Genetic Signatures will provide instruments for testing.

Management has warned that the duration and severity of the COVID-19 pandemic is uncertain and may influence the number of EasyScreen SARS-CoV-2 Detection Kits purchased. Though, if target volumes are achieved this will contribute significant revenue to Genetic Signatures over the life of the agreement.

The first order for US$227,000 has been received and will be invoiced this month.

Genetic Signatures' CEO, Dr John Melki, commented: "The new supply agreement and first North American customer marks a major milestone for Genetic Signatures. We are pleased to be working with the Boston Medical Center, a highly regarded hospital and medical center in the US. As COVID-19 remains a challenge in North America, wide-spread testing remains key to managing the spread of the disease."

"Genetic Signatures remains focused on both growing its global reputation as a leading molecular diagnostics company, and the provision of reliable and accurate diagnostic solutions. While securing new customers across North America and EMEA is a near-term focus, the Company is continuing to market the benefits of more comprehensive screening with our EasyScreen™ Detection Kit range," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

piggy bank at end of winding road
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a lucrative Tuesday session today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Capitol Health, Infratil, Newmont, and Race Oncology shares are charging higher

These shares are having a good session. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Capitol Health, Capricorn Metals, Credit Clear, and Telix shares are storming higher

These shares are starting the week with a bang. But why?

Read more »

Three exuberant runners dash towards the camera. One raises her arms in triumph; another jumps in the air with arms raised. The third runner gives a satisfied smile.
Share Gainers

3 ASX 200 shares going gangbusters in June

ASX 200 investors have sent these three stocks soaring in June. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

Why Boss Energy, Judo Capital, Life360, and Paladin Energy shares are pushing higher

These shares are ending the week on a high. But why?

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

Today's trading gave ASX investors some much-needed relief.

Read more »

Happy man working on his laptop.
Share Gainers

Why Bubs, Codan, Life360, and Sayona Mining shares are charging higher

These shares are catching the eye on Thursday. What's going on?

Read more »

a cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Consumer Staples & Discretionary Shares

Guess which A2 Milk rival's shares just rocketed 21% on US news!

Up 65% in 2024, A2 Milk shares remain the better performer, but this rival is making up ground today.

Read more »