Co-Diagnostics Inc. ( CODX ) shares dropped 28.26% to $0.46 in pre-market trading on Tuesday, wiping out the gains from Monday’s 80.76% surge, which had closed at $0.64, according to Benzinga Pro data.

Check out the current price of CODX stock here.

Strategic Partnership Fails to Sustain Momentum

The molecular diagnostics firm revealed it has signed a Memorandum of Understanding with a Saudi Arabian partner to potentially create a joint venture aimed at developing and distributing its Co-Dx™ PCR platform technology throughout the Middle East and North Africa.

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Despite the strategic expansion announcement, investor sentiment turned bearish in the early trading session, with the stock retreating from Tuesday’s dramatic gains that represented a 49.30% year-over-year decline.

Saudi Arabia Expansion Details

The proposed joint venture would allow the Saudi partner to license Co-Diagnostics’ intellectual property, including the upcoming Co-Dx™ PCR point-of-care platform, for the Middle East and North Africa (MENA) markets. In return, the Saudi partner would offer operational support, infrastructure, and regulatory expertise, similar to Co-Diagnostics’ partnership with CoSara Diagnostics in India.

“We are pleased to announce this Memorandum to formalize the structure, scope and mission of an anticipated joint venture in KSA,” said CEO Dwight Egan, citing alignment with Saudi Arabia’s Vision 2030 initiatives.

Technical Outlook

The Co-Dx PCR platform remains subject to Food and Drug Administration (FDA) regulatory review and is not yet commercially available

According to the company’s press release, Saudi Arabia is one of the company’s largest international markets for Logix Smart® diagnostic tests.

Market Context

From its peak of $1 on January 6, the stock has fallen 36% to close at $0.64 yesterday. Despite the price decline, trading volume surged from 1.8 million to 243 million shares, which is significantly higher than the average volume of 3.63 million shares, indicating an unusual spike in activity.

With a $24.85 million market capitalization, CODX trades within a 52-week range of $0.23-$1.40.

Benzinga’s Edge Stock Rankings indicate that the Utah-based corporation is experiencing long-term consolidation along with medium and short-term upward movement. Know how its momentum lines up with other well-known names.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.