Several molecular diagnostic companies have added COVID-19 testing to their platforms throughout the year.

Why?

To supplement a temporarily weak core business? To pull down high-margin cashflow for later use? To gain corporate visibility?

Answers may vary.

However, I'm highly skeptical that any COVID-19 testing volume will convert over to core business volume once the pandemic abates.

Consider the case where my core business is tissue/liquid biopsy for late-stage cancer.

There is ZERO call-point overlap between that and COVID.

Oncologists order oncology diagnostics. They do not care, or likely even know, that a company is providing COVID-19 assays for their clinic.

Large state/employer/school-level contracts are the same. There is no call-point overlap, no additional sales penetration.

'Brand visibility' also is a dubious proposition here. If both the COVID-19 test and the core test are direct-to-consumer, then sure, there may be a slight visibility tailwind. However, it could also go the other way:

"Oh, that COVID-19 company also does genetics?"

To be fair, I've got nothing against diagnostic companies pursuing or supplementing their businesses by adding to the national COVID testing capacity.

However, COVID-19 volume is very unlikely to meaningfully convert to core business volume, in my opinion.