CODX Stock Reverses Pre-Market Gains Driven By South Asia Expansion Deal – Retail Highlights ‘Dead Cat Rally’

• Co-Diagnostics said the expansion opens up a potential addressable market of around $13 billion.
• The expansion will support the rollout of the PCR Pro point-of-care platform and SARAGENE test products.
• The firm regained compliance with Nasdaq’s minimum bid price requirements earlier this month.

Shares of Co-Diagnostics Inc. (CODX) reversed their pre-market gains and fell around 5% on Friday, after the company announced its foray into Bangladesh, Pakistan, Nepal, and Sri Lanka, a move that lifts its total addressable market to an estimated $13 billion.

CODX shares had climbed as high as 45% in pre-market trading.

Expansion Through Indian JV

The biotech company said the expansion will be carried out through its Indian joint venture, CoSara Diagnostics. The expansion will support the rollout of CoSara’s PCR Pro point-of-care platform and SARAGENE test products, pending regulatory approvals. CoSara will host a virtual distributor information session in the second-quarter (Q2) of 2026.

Mohal Sarabhai, CEO of CoSara, said that South Asia represents a large and rapidly growing market for molecular diagnostics, with a significant need for easily accessible, non-invasive, quick, and reliable testing solutions.

Co-Diagnostics develops advanced diagnostic technologies based on DNA and RNA analysis, and PCR-based tests to detect genetic markers across applications beyond infectious diseases.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits remained in the ‘bullish’ territory over the past 24 hours.

One user called the stock’s movement a “classic dead cat rally.”

According to Fiscal.ai data, the company is expected to post revenue of approximately $160,000 in Q4 and a loss of approximately $3.60 per share. Co-Diagnostics is likely to report its quarterly earnings on March 31.

Last week, Co-Diagnostics received a new patent from the Japan Patent Office for its automated biological testing technology, following a similar patent granted in Australia last year. The patent strengthens its intellectual property portfolio and supports its PCR Pro platform, including its testing system and proprietary test cups.

Earlier this month, the company said it had regained compliance with Nasdaq’s minimum bid price requirements. It had previously carried out a 1-for-30 reverse stock split, effective Jan. 2, 2026.

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