Co-Diagnostics builds solid platform for growth in 2019; pivots to coronavirus test rollout

Co-Diagnostics Inc (NASDAQ:CODX) said last year's milestones, strengthened strategic relationships, and expanded product pipeline, have all set the company up for further growth in 2020. Reporting financial results for the year to December 31, 2019, the Salt Lake City-based molecular diagnostics group noted that it had been the first US company to receive a CE-mark from the European Union (EU) for its Logix Smart coronavirus (COVID-19) test. READ: HC Wainwright repeats 'Buy' on Co-Diagnostics after FDA policy shift It is currently shipping orders for its test kits to 10 to 13 countries across five continents, including America, Europe, Asia and Australia, resulting in revenues for the first quarter of 2020, and the firm has had inquiries from nearly 50 countries. Moreover, a new Food and Drug Administration (FDA) policy reported last week should allow it to aggressively expand the test kits in the USA. "Recent events have dramatically changed our trajectory and outlook as we leverage our skill set in the field of infectious disease diagnostics, and we find ourselves in a position to have a significant positive impact on the COVID-19 pandemic," Dwight Egan, the chief executive of Co-Diagnostics, explained in Tuesday's statement. "The work we have performed to bring a sorely-needed test to market, first as a CE-marked IVD to countries across the world and now to the United States, speaks to our commitment to providing diagnostic tools that have the potential to save lives by providing accurate diagnoses—the first step in ensuring accurate treatment." In its financials, the firm highlighted that it was now debt-free, having eliminated all debt incurred in 2018 via a sale of $3 million of preferred shares in January last year. In the first quarter of 2019, the group also brought in around $5.5 million  gross from a shelf offering and has recently sold shares in a series of offerings for gross proceeds of around $19.5 million. Milestones last year Among milestones reached last year, the firm highlighted its expanded license agreement with LGC, Biosearch, an international leader in the extended life sciences sector and products launched under its vector control vertical, which included those to identify infectious diseases in mosquito populations. In addition, the facility for CoSara Diagnostics Pvt Ltd, Co-Diagnostic's joint venture with Synbiotics Limited for manufacturing and sales in India, saw its inaugural opening in April last year. Later, CoSara received clearance by the CDSCO to be used as in vitro diagnostics for tuberculosis, human papillomavirus, hepatitis B, hepatitis C, and malaria. In keeping with a firm at this stage of its evolution, the net loss for the year to December 31 was $6.19 million, compared to a loss of $6.27 million in 2018. Contact the author at giles@proactiveinvestors.com