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Co-Diagnostics' Mpox test effective against new clade

Published 05/09/2024, 14:38
CODX
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SALT LAKE CITY - Co-Diagnostics , Inc. (NASDAQ:CODX), a molecular diagnostics company, announced that its Co-Dx™ Logix Smart® Mpox (2-Gene) RUO test is effective against the recently identified clade Ib mpox strain. An in silico analysis, which is a computer-simulated experiment, confirmed that the test retains full reactivity with all mpox strains seen in the past year, including the more transmissible and severe clade 1b.

The recent spread of mpox prompted the Africa CDC to declare a Public Health Emergency of Continental Security on August 13, 2024, and the WHO followed suit with a global health emergency declaration the next day. As of August 27, 2024, over 22,800 cases and 622 deaths have been reported in Africa. The Co-Dx Logix Smart Mpox tests, designed for research use, were developed in response to the 2022 outbreak and have been shown to effectively detect the virus from saliva samples.

Co-Diagnostics CEO Dwight Egan emphasized the company's commitment to advancing PCR testing solutions and meeting the global demand for high-quality infectious disease diagnostics. The company has received international requests for its test kits for performance validation in laboratories.

The Co-Dx PCR platform, which includes the PCR Home™ and PCR Pro™, is currently under regulatory review and is not yet available for sale. The platform is intended to enhance the tracking and management of infectious disease outbreaks.

This development is based on a press release statement from Co-Diagnostics, Inc., which specializes in the development and marketing of diagnostics technology for DNA or RNA nucleic acid detection and analysis. The company's proprietary technology also contributes to the design of specific tests for its forthcoming Co-Dx PCR at-home and point-of-care platform.

Investors should note that the press release contains forward-looking statements, which are subject to uncertainties and risks. The actual results may differ from those projected. The company has made no commitment to update any forward-looking statements, as detailed in their SEC filings.

In other recent news, Co-Diagnostics, Inc. reported noteworthy advancements in its operations and financial performance. The company's Q2 2024 earnings revealed a total revenue of $2.7 million, surpassing analysts' projections due to a significant grant revenue of $2.5 million. Despite this, the firm experienced a net loss of $7.6 million, lower than the anticipated loss of $10.6 million.

The annual shareholder meeting underscored strong investor support, with James Nelson retaining his director position and shareholders approving executive compensation. Tanner LLC was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024.

In reaction to these developments, H.C. Wainwright revised its price target for Co-Diagnostics from $2.00 to $1.50, maintaining a Neutral rating. The company has also been progressing its product pipeline, submitting its first 510(k) application for the Co-Dx PCR Pro instrument and the Co-Dx PCR COVID-19 test for over-the-counter use. Clinical trials for these tests are expected to commence in South Africa, India, and during the upcoming flu season. These are recent developments concerning Co-Diagnostics.

InvestingPro Insights

Amidst the urgency of addressing the mpox outbreak, Co-Diagnostics, Inc. (NASDAQ:CODX) has positioned itself as a responsive player in the molecular diagnostics field. The company's recent announcement regarding the efficacy of its Co-Dx™ Logix Smart® Mpox (2-Gene) RUO test against various strains of the virus demonstrates its proactive approach in combating infectious diseases. Investors tracking CODX will find the following metrics and tips from InvestingPro insightful for understanding the company's current financial health and market performance.

InvestingPro Data reveals that Co-Diagnostics has a market capitalization of $48.19 million, indicating its size within the biotech and diagnostics sector. Despite facing challenges, as evidenced by a negative price-to-earnings (P/E) ratio of -1, the company's revenue growth in the last twelve months as of Q2 2024 stands at 25.24%. This growth is further highlighted by a staggering quarterly revenue growth of 1243.15% in Q2 2024, showcasing the company's potential to scale rapidly in response to global health needs.

Two InvestingPro Tips further contextualize the company's market dynamics: Co-Diagnostics holds more cash than debt on its balance sheet, providing a cushion for operational flexibility. However, analysts do not anticipate the company will be profitable this year, reflecting the high costs and investments associated with product development and market penetration in the competitive diagnostics space. Notably, the stock has experienced a strong return over the last three months, with a 21.36% increase, suggesting investor confidence in its growth trajectory or response to market conditions.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CODX. These tips can offer deeper insights into Co-Diagnostics' financial standing, market behavior, and potential investment risks or opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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