Avalon GloboCare Corp (NASDAQ:ALBT) has updated investors on its progress in implementing its new commercial strategy focused on laboratory acquisitions and diagnostics.
In a letter to shareholders, the company’s CEO David Jin noted that the company intends to play a leading role in the innovation of diagnostic testing, utilizing proprietary technology to deliver precise, genetics-driven results.
“As a first major step into the laboratory market, we acquired a 40% interest in Laboratory Services MSO (LSM), which closed in February 2023,” Jin said.
“LSM generated revenue of $14.7 million and net income of $6.3 million in 2022. In turn, we believe our profit-sharing arrangement with LSM will result in significant future cash flow for Avalon.
“Since the acquisition, LSM has executed on its growth plan and has expanded their service offering to customers seeking to utilize providers within their insurance network. In addition, they have continued to evaluate additional accretive acquisitions.”
Jin added that the company’s goal is to take advantage of a unique roll-up opportunity within the highly fragmented market for laboratory testing and services.
“By targeting laboratories with strong financial track records and niche-market advantages, we believe we can effectively leverage LSM’s experience and infrastructure to achieve significant synergies with respect to revenue growth and market share,” he said.
Jin also pointed out that during 2023 Avalon has secured exclusive distribution rights and is making progress toward commercialization of the KetoAir breathalyzer device and related accessories.
Following a successful launch at the KetoCon conference held in Austin, Texas in April, Jin said the company was evaluating options for commercialization, including identifying distribution partners or distributing KetoAir itself.
The CEO concluded his letter by stating: “We believe 2023 will be a pivotal year in the company’s history as we laid the foundation over the past few years to accomplish major achievements and successes in the coming year.”
Avalon GloboCare is a commercial-stage company dedicated to developing and delivering innovative, transformative, precision diagnostics and clinical laboratory services.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie