New York, May 29, 2019 (GLOBE NEWSWIRE) -- CODX Reports Initial Domestic Sales Following Release of Q1 Numbers
New York City, New York – Molecular diagnostics company Co-Diagnostics (Nasdaq: CODX) reported initial sales in the US from its vector control program last week, an encouraging sign that they are able to execute their business model and generate revenue following the release of quarterly results that were generally poorly received by the market.
The sales announcement included reports that they have sold two laboratory packages—which are priced at $15,000-$25,000 according to their website—with more sales agreements expected before the end of June. This shows a significant uptick in revenue from Q1, and validates the CEO’s forecast in the Q1 press release from the previous week that the company expected to make announcements in the near term related to product roll-outs and sales agreements. Molecular diagnostic solutions for mosquito populations fall outside of regulatory oversight as in vitro diagnostics, which creates interim sales opportunities in the United States while the company proceeds through the regulatory track for its infectious disease diagnostics.
The domestic revenue derived from these mosquito abatement products has been anticipated to be significant, and if the company’s ability to affect these sales is any indication, the anticipated additional announcements may be right around the corner. Even modest revenue from the low end of the laboratory package price scale for mosquito abatement products will represent a substantial and welcome increase from the numbers released at the end of Q1, which the market seemed to regard as disappointing if the slide in share price was any indication.
In addition to sales from the vector control vertical, the Q1 press note primed the pump for increased revenue from their joint venture in India, and expanded licensing opportunities of their CoPrimer technology. While revenue from the former didn’t appear as top-line in their unaudited financial statements, it was declared to be approximately $56,000 for the quarter. It should be noted however that the actual JV manufacturing facility was not inaugurated until Q2, and the CEO set expectations to see increased sales growth in that sector.
Recent revenue progress illustrates an ability to meet these and other expectations. A continuation of this progress in India and the US alike would provide relief for shareholders and institutional investors in CODX and make its current share price extremely undervalued, especially in conjunction with the company’s debt- free status, ample cash on the books, and the low operational overheads mentioned in recent analyst reports.
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