Co-Diagnostics sees 3Q net income surge as revenue rises from COVID-19 test sales

Co-Diagnostics Inc (NASDAQ:CODX) late Monday reported its third-quarter financial results, in which it generated $15.7 million in net income, or $0.53 per share, as well as year-to-date net income of $29.7 million, or  $1.07 per share. The company also announced the receipt of CE markings for both its Logix Smart ABC and SARS-CoV-2 2-gene tests during the quarter. Both tests are designed for use in saliva and other respiratory tract samples like nasal swabs, and sputum.  Co-Diagnostics realized revenue for the period of $21.8 million, driven by its COVID-19 test sales. CoSara Diagnostics, the company’s India joint venture, also continued its COVID-19 sales and reported $3 million of revenue, nearly a three-fold increase over 2Q.    Co-Diagnostics CEO Dwight Egan said in a statement: “Co-Diagnostics continues to see widespread uptake of our COVID-19 test domestically and abroad, and we believe our customer and distributor bases are laying the foundation for a strong future”. READ: Co-Diagnostics' detection of infectious disease has led it to join the coronavirus fight with flagship test He added: “Development projects both completed and ongoing have helped position CoDiagnostics as a key player in the battle against the coronavirus pandemic, including receipt today of two important CE markings that will allow our ABC and COVID-19 2-gene tests to be sold as in vitro diagnostics in areas that accept CE markings as valid regulatory approval. The strength and flexibility of our technology platform as illustrated by our enhanced patent protection and successful proof of concept in extraction-free COVID-19 tests underscore our core competency as a forward-looking technology company with an expanding menu of critical diagnostic tools.” Co-Diagnostics achieved gross margins of 73% on its 3Q sales and ended the period with cash and equivalents of $27.3 million as of September 30, 2020, an increase of $26.4 million from year-end 2019. Other highlights from the quarter included the completion of design work and verification for influenza A, influenza B, and COVID-19 (ABC) multiplex panel as the company began distributing it on a Research Use Only basis to laboratories in the first week of October. As well, Co-Diagnostics announced that its partner Clinical Reference Lab has begun selling its CRL Rapid Response COVID-19 test directly to consumers. The test uses CoPrimer probes and primers developed by Co-Diagnostics with high degrees of sensitivity and specificity.   Contact Sean at sean@proactiveinvestors.com