Co-Diagnostics (NASDAQ:CODX) Inc announced that it has signed agreements to acquire Idaho Molecular Inc and Advance Conceptions Inc for the development of its upcoming at-home/point-of-care diagnostic device.
The Utah-based company said that the transactions will provide it with all the existing and future assets and intellectual property related to the upcoming platform.
"The company expects that the acquisition will streamline the commercialization of the Eikon™ platform and YourTest™ PCR device as it nears completion and prepares for a market release with an easy-to-use sample-to-result COVID-19 test," Co-Diagnostics (NASDAQ:CODX) said in a statement.
It noted that the terms include the issuance of nearly 4.72 million shares of its stock, including those shares provided as incentives to encourage efficient and timely completion of development and manufacturing milestones, plus additional common warrants totaling 465,000. The closing of the agreement is expected before the end of the year 2021.
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“For nearly a year now we have had the honor of working with some of the greatest minds in PCR device development, and we are pleased to be able to announce that with this merger they will become part of the Co-Dx family,” said Dwight Egan, CEO of Co-Diagnostics (NASDAQ:CODX), in a statement.
He added: “We believe that this acquisition immediately increases the company’s value and will allow for greater efficiency when developing future product iterations and as we begin principle and large-scale manufacturing of the device and initial COVID-19 test, all with the additional financial benefit of allowing commercialization of these groundbreaking products without royalties or restrictions.”
Kirk Ririe and Carl Wittwer, both pioneers of rapid and real-time PCR who have launched a series of PCR instruments in use worldwide, and who are key personnel in the platform’s development to date, will respectively become president of the wholly-owned subsidiary and chairman of the company’s scientific advisory board.
The YourTest PCR device has been designed with highly specialized optics to accommodate multiplexed assays as the company expands its suite of Eikon products to include additional respiratory and other infectious diseases utilizing its patented CoPrimer technology.
Co-Diagnostics (NASDAQ:CODX) added that the affordable single-use YourTest PCR COVID-19 test cartridges, which are designed to work with either saliva or nasal swab samples, would be analyzed in the reusable device with results displayed on users’ smartphones, pairing gold-standard PCR results with the affordability and speed of less accurate testing platforms.
“The infectious disease testing landscape has shifted dramatically in the past two years, especially as it relates to COVID-19,” said Egan.
He concluded: “Our strategy going forward is focused on making this next-generation healthcare solution available worldwide. We believe that this acquisition provides the best opportunity to realize the full potential of the Eikon platform, and the company as a whole. This business combination gives us the talent and technology to build on the foundation we have already established and propels us forward as the world traverses from centralized healthcare to more efficient and cost-effective at-home and point-of-care business models.”
Contact Ritika at ritika@proactiveinvestors.com