NEW YORK – Fulgent Genetics announced Monday that it has opened a CLIA-certified laboratory in Houston that will initially focus on COVID-19 testing. The firm also raised its full-year 2020 total revenue guidance.
Fulgent Houston will have a capacity for 20,000 tests per day with the ability to expand, the firm said in a statement. "We have experienced continued momentum in all facets of our business since our earnings call earlier this month, with strong demand for our test and service offerings. Fulgent Houston will be operational immediately, and as a result of increased capacity, we are raising our FY20 revenue guidance from $120 million to $135 million," Fulgent CFO Paul Kim added.
"We applaud Fulgent's recent testing expansion moves," Piper Sandler Analyst Steven Mah wrote in a research note. "We continue to believe that COVID-19 testing is durable for the next few years, and we are encouraged by Fulgent's early success." Mah raised the price target for shares of Fulgent from $68 to $73.
Temple City, California-based Fulgent Genetics jumped into COVID-19 testing in March and company officials have said the firm has already recouped its investment. The firm has received several Emergency Use Authorizations from the US Food and Drug Administration for its RT-PCR tests for SARS-CoV-2 and has submitted another for a next-generation sequencing-based test.
The Houston lab opening comes just weeks after the firm announced it had purchased a facility in El Monte, California that would more than double its testing capacity, compared to the original lab.
"Fulgent Houston demonstrates our commitment to contributing our technology and resources to address the tremendous demand for COVID-19 testing," Fulgent Chief Commercial Officer Brandon Perthuis said in a statement. "Fulgent Houston will deliver testing at scale with an industry leading turnaround time."