Co-Diagnostics increases production of coronavirus diagnostic test on robust demand

Co-Diagnostics Inc (NASDAQ:CODX) announced Thursday it sees ongoing robust sales of its coronavirus (COVID-19) diagnostic test.

The Salt Lake, Utah-based company said it closed its first quarter of 2020 on March 31 with $1.5 million in revenue thanks to demand for its Logix Smart COVID-19 test kits. Gross margins hit 71.5% on sales of the test.

Co-Diagnostics also noted it raised $18 million in capital during the quarter as it plans to ramp up production of the test kits, which have shown 100% specificity and 100% sensitivity in several independent evaluations.

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The test, which is currently available to all certified clinical laboratories, uses the company’s patented CoPrime technology to detect the presence of RNA in SARS-CoV-2, the virus that causes the COVID-19 disease. The test is designed to run on a variety of commercially available platforms, with easy-to-interpret results in under two hours

The company said it has manufactured more than six million COVID-19 tests to date and has ordered components for more than 20 million additional tests to fill existing and expected orders in the near future.

Meanwhile, Co-Diagnostics said it is seeing unaudited COVID-19 test and equipment sales of over $18 million year-to-date through the mid-second quarter as it gets test orders from public and private organizations in nearly 50 countries and over 15 US states.

“Co-Diagnostics has increased production capacity to meet the growing demand for our tests,” said CEO Dwight Egan in a statement.

“We have positioned the company to continue to make an important contribution in meeting the enormous demand for tests around the world. Our value proposition of accurate, high-throughput, and cost-effective tests continues to resonate with customers around the globe.”

The company’s stock recently traded up 4.4% to $23.11 in after-hours trading in New York. 

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Story by ProactiveInvestors