The IDT Australia Limited (ASX: IDT) share price was on fire again on Monday.
The pharmaceutical manufacturing company’s shares were up as much as 67% to a multi-year high of 47.5 cents at one stage.
When the IDT Australia share price hit that level, it meant it was up 150% in the space of just two trading sessions.
The company’s shares eventually ended the day with a gain of 52.5% to 43.5 cents.
Why is the IDT Australia share price up 150% in two trading sessions?
Investors have been scrambling to buy IDT Australia’s shares following the release of a positive yet brief announcement at the end of last week.
That announcement revealed that the Australian Government’s Department of Health has been in touch with the company in respect to support in manufacturing COVID-19 vaccines.
According to the release, IDT Australia is now undertaking a feasibility assessment to assess the possibility of utilising its sterile manufacturing facility to supplement the production capability for a COVID-19 vaccine.
At this stage, no further details have been released. However, the company intends to provide the market with updates as and when additional information comes to hand.
Though, given its experienced team of specialists and world class facilities, the company appears well-positioned to help with the vaccine manufacturing.
But because of the unknowns, investing at this stage is very high risk. After all, nobody knows just how much revenue would be generated should the company be given a contract.
IDT Australia isn’t the only company that investors have been buying shares of for this reason.
The Probiotec Limited (ASX: PBP) share price has also risen strongly over the last two trading sessions.
Probiotec is a leading manufacturer, marketer, and distributor of a diverse range of prescription and over-the-counter pharmaceuticals, complementary medicines, and specialty ingredients. Investors may believe it could be called into action as well.