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Co-Diagnostics Trims Net Loss in 2018

NEW YORK (GenomeWeb) — Co-Diagnostics today reported a 10 percent decline in its net loss for 2018 as the company began to generate revenues from the sale of its molecular diagnostics.

For the 12-month period ended Dec. 31, Co-Diagnostics posted a net loss of $6.3 million, or $.50 per share, versus $7.0 million, or $.63 a share, in 2017. The Salt Lake City, Utah-based firm attributed the decline to a one-time $2.1 million expense incurred in 2017 tied to the extinguishment of debt after its initial public offering.

Revenues for the year were $39,911 and included $700 in initial sales of its diagnostic tests, as well as $29,088 in revenues from the licensing of its CoPrimer PCR and other technologies. In 2017, Co-Diagnostics recorded revenues of $7,662, which included no product sales and $6,062 in licensing revenues.

In 2018, the company received CE-IVD marking for its first products — the Logix Smart Zika screening test and Logix Smart tuberculosis test — and earlier this year got CE-IVD marking for a combination Zika virus, dengue fever, and chikungunya test. With a focus on developing markets, Co-Diagnostics has indicated that it will not seek US approval for certain of its tests due to low domestic rates of infection.

The firm's R&D spending in 2018 climbed 40 percent year over year to $1.4 million from $1.0 million amid growing staffing costs, increased use of lab supplies, and higher consulting fees for research services. Its SG&A costs, meanwhile, grew 34 percent to $4.7 million from $3.5 million, in part due to the acquisition of a distributor network.

At the end of 2018, Co-Diagnostics had cash and cash equivalents of $950,237 compared to $3.5 million at the end of 2017. In January, the company signed definitive agreements to sell $5.5 million in common stock to institutional investors.

"We now have the resources and approvals required to begin commercializing our technology in several verticals and markets," Co-Diagnostics CEO Dwight Egan said in a statement. "We look forward to continuing our positive momentum in 2019 and beyond."