Why COVID-19 is launching the IDT Australia (ASX:IDT) share price 65%

The IDT Australia (ASX:ITD) share price is soaring on news the company has been asked whether it is capable of producing COVID-19 vaccines.

| More on:
covid asx share price represented by man in face mask giving thumbs up

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

sdf

IDT Australia Limited (ASX: ITD) shares are soaring today after the company announced it has been approached by the Australian Government to assess the feasibility of producing COVID-19 vaccines. At the time of writing, the IDT share price is rocketing 64.86% to 30.5 cents.

The pharmaceutical company, known for producing medical cannabis products, is assessing whether its facilities would be suitable to manufacture the vaccines.

Let's take a closer look. 

Vaccine production ramps up

IDT Australia announced today it has been contacted by the Australian Government Department of Health. The company claims the department was inquiring about whether IDT Australia's Melbourne-based sterile facility could be used to supplement manufacturing of COVID-19 vaccines. 

Currently, the Federal Health Department states that CSL Limited's (ASX: CSL) Melbourne facility is the only manufacturer of the Oxford-AstraZeneca vaccine in Australia. It also states that the Oxford-AstraZeneca vaccine will be the only one to be produced in Australia.

COVID-19 vaccinations began rolling out in Australia on 22 February this year. At the time of writing, approximately 240,000 Australian's have received the vaccine.

More about IDT Australia

IDT, Institute of Drug Technology, is a commercial-scale pharmaceutical manufacturing and production company.

It specialises in manufacturing active pharmaceutical ingredients and finished form doses.

IDT Australia began manufacturing medicinal cannabis products in 2019 and, according to the company, it operates a leading facility in the medical cannabis manufacturing space.

IDT Australia share price snapshot

Following today's gains, the IDT share price is now trading at its highest levels since May 2016. 

Over the past year, IDT shares have risen by around 210%. The company's shares are also up by around 60% year to date however all these gains have occurred today. 

IDT Australia has a market capitalisation of around $44.4 million with approximately 240 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 Market News

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

These ASX 200 shares could rise 25% to 80%

Analysts think big returns could be on offer from these shares.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were nervous this Friday, ending the week on a sour note.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Market News

Where to invest $5,000 into ASX 200 shares this month

The team at Bell Potter is bullish on these names. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

8 ASX 200 shares hitting multi-year highs today

These shares have defied the trend, hitting new price milestones amid a day in the red for the ASX 200.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EOS, Evolution Mining, Renascor, and Woodside shares are jumping today

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

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Accent, Cettire, Ioneer, and Pro Medicus shares are dropping today

These shares are ending the week in the red. What's going on?

Read more »

A group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »