Co-Diagnostics Inc (NASDAQ:CODX) ended its second quarter of 2022 with a cash balance of US$96 million to help it progress development of its Co-Dx PCR Home testing platform for infectious diseases.
During the three-month period to end June 30, 2022, the company completed the principal design for a monkeypox virus test and shipped testing reagents to its international distributor. Also, its Indian joint venture partner CoSara received clearance from Indian regulators for the Hepatitis C viral load test.
The company also announced the expansion of its original equipment management (OEM) agreement with Bio Molecular Systems for the Co-Dx Box magnetic induction PCR cycler, to encompass 193 countries worldwide, and showcased the Co-Dx PCR Home device at several tradeshows and conferences.
READ: Co-Diagnostics set to expand OEM deal with Bio Molecular Systems at AACC expo
Co-Diagnostics CEO Dwight Egan said the reduction in mandated testing in travel and public venues and in government funding for testing programs were reflected in lower second quarter volumes, which saw the company take a hit to its bottom line.
“The company has initiatives underway intended to actively address these pressures, such as growing our international distributor network, expanding our infectious disease testing menu including monkeypox, and most importantly, our upcoming at-home/point-of-care testing platform. We anticipate these initiatives will potentially be bolstered by recurring COVID surges as we have previously experienced,” Egan said.
The CEO told shareholders that progress continues in the development and optimization of the Co-Dx PCR Home testing platform and its manufacturing capacity to meet the anticipated demand for gold-standard PCR in at-home and point-of-care settings.
Egan told investors that the need for accurate and reliable COVID-19 testing will persist as new variants emerge.
“We continue to invest time and resources to meet the evolving demand for COVID-19 and other infectious diseases globally. We remain confident in our business strategy and in our unique portfolio of innovative testing products that extend far beyond COVID-19,” Egan said.
Second quarter revenue came in at US$5 million, down from $27.4 million during the prior year period, due primarily to lower demand of the Logix Smart COVID-19 test.
The company reported a net loss of $2.7 million or $0.08 per fully diluted share, and an adjusted EBITDA loss of $2.3 million.
Utah-based Co-Diagnostics is a molecular diagnostics company that develops, manufactures and markets new, state-of-the-art diagnostics technologies. The company's technology is used for tests designed using the detection and/or analysis of nucleic acid molecules: DNA or RNA. The company also uses its proprietary technology to design specific tests to locate genetic markers for use in industries other than infectious disease and license the use of those tests to specific customers.
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