STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), a company specializing in PCR-based DNA manufacturing technologies, announced today it has received a follow-on order exceeding $500,000 for its Linea™ DNA product. This order, placed by a global in vitro diagnostics manufacturer, will be supplied over the course of 2025 in four quarterly shipments.
The order underlines a continued partnership, as the customer, engaged in the production of a cancer diagnostic test, has been placing gram-scale orders with Applied DNA for almost a decade. The company's president and CEO, Dr. James A. Hayward, expressed optimism regarding the recurring nature of the order, which arrived less than a year after the previous one. He emphasized the company's readiness to cater to the diagnostic industry's increasing demand for DNA and to broaden their in vitro diagnostics (IVD) customer base.
Linea™ DNA, utilized in the order, is a linear DNA produced through an enzymatic process using the company's proprietary Linea™ DNA platform. This platform operates on a large-scale polymerase chain reaction (PCR) basis and offers an alternative to plasmid-based DNA. Linea DNA's applications extend to various nucleic acid-based therapies and diagnostics, including mRNA therapies, DNA vaccines, cell and gene therapies, as well as molecular and genetic diagnostic tests.
Applied DNA Sciences operates primarily in three business sectors: the production of synthetic DNA for nucleic acid-based therapeutics, the detection of DNA and RNA for molecular diagnostics, and the use of DNA for industrial supply chain security services.
While the company has a history of net losses and faces uncertainties regarding the future demand for its products and the revenues from its Linea IVT and DNA platforms, this order represents a positive development for Applied DNA. The company has not yet had a commercial drug product utilizing PCR-produced DNA technology approved for therapeutic use.
This announcement is based on a press release statement from Applied DNA Sciences. The company's shares are publicly traded on the NASDAQ stock exchange.
In other recent news, Applied DNA Sciences has expanded its clinical testing services to detect both Clade I and Clade II of the Mpox virus. This development is expected to enhance states' capacity to address the Mpox threat. The company has also been granted a subcontract to support cotton traceability in Pakistan, a project aimed at reducing child and forced labor in global supply chains. Furthermore, Applied DNA Sciences has submitted a validation package to the New York State Department of Health for the expanded use of its Linea™ Mpox Virus 1.0 Assay.
Meanwhile, the company has announced a partnership with Indus Group, integrating the CertainT® traceability platform into Indus's non-home textile products. A public offering is expected to generate approximately $12 million in gross proceeds. However, analyst firm H.C. Wainwright has lowered their price target for Applied DNA Sciences shares, while maintaining a Buy rating.
In addition, the company has received approval from the New York State Department of Health for its pharmacogenomic testing service, TR8™, and plans to implement a reverse stock split to comply with Nasdaq's listing rules. These are the recent developments in Applied DNA Sciences' operations.
InvestingPro Insights
Applied DNA Sciences' recent follow-on order for its Linea™ DNA product is a testament to its ongoing relationships with clients in the diagnostic industry. In light of this development, certain financial metrics and analyst insights from InvestingPro may provide a deeper understanding of the company's current market position and future prospects.
InvestingPro Data reveals a market capitalization of $13.7 million for Applied DNA Sciences, which may be considered relatively small within the biotech industry. This size could suggest a higher risk profile, but also potential for growth. The company's revenue for the last twelve months as of Q3 2024 stands at $3.4 million, but it is important to note a significant decrease in revenue growth during the same period, at -78.96%. This sharp decline might raise concerns about the sustainability of the company's sales trajectory.
Moreover, with a negative P/E ratio of -0.27 and an adjusted P/E ratio of -1.82 for the last twelve months as of Q3 2024, Applied DNA Sciences is not currently profitable. This aligns with one of the InvestingPro Tips, which indicates that analysts do not expect the company to be profitable this year. However, the company's ability to secure recurring orders like the recent one suggests that there is ongoing demand for its specialized DNA products.
On the volatility front, the stock has experienced high price volatility, as indicated by another InvestingPro Tip. This could be of interest to investors who are comfortable with significant price swings and have a longer-term investment horizon. Additionally, despite the recent downturns, the company has seen a strong return over the last month, with a price total return of 74.99%.
For those interested in diving deeper into the financial health and future performance of Applied DNA Sciences, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available, which can be accessed for more detailed analysis and could be invaluable for making informed investment decisions. To explore these insights, visit the dedicated page for Applied DNA Sciences at https://www.investing.com/pro/APDN.
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