Co-Diagnostics (NASDAQ:CODX) Inc. revealed a drop in total revenue for Q3 2023, with a focus on several key developments and a positive outlook for their future projects. The company reported a total revenue of $2.5 million, a decrease from $5.1 million in the same period last year. Despite the decrease in revenue, Co-Diagnostics remains confident in their regulatory and commercialization approach, with plans for expanded testing solutions and a strong cash position.

Key takeaways from the call include:

• Total revenue for Q3 2023 was $2.5 million, with grant revenue accounting for $2.3 million and product revenue contributing $0.2 million.
• Co-Diagnostics is focusing on building capacity in a new manufacturing facility for their Co-Dx PCR platform and initiating third-party evaluation for their tuberculosis assay.
• The company received a $9 million grant from the Bill and Melinda Gates Foundation for the tuberculosis assay.
• Co-Diagnostics plans to submit their COVID-19 assay for FDA emergency use authorization by the end of the year.
• The company is developing a multiplex upper respiratory test and an HPV test.
• Co-Diagnostics ended the quarter with $63.4 million in cash and equivalents.

Co-Diagnostics has been actively working towards expanding their testing solutions, focusing on institutional settings like skilled nursing facilities and assisted living centers. They are also planning to begin clinical evaluations for their tuberculosis test in the first half of 2024.

The company is in the process of seeking a recommendation from the World Health Organization (WHO) for their tuberculosis test, which is crucial for sales in several regions, including Africa. They aim to pursue a regulatory pathway for this test in Australia and India, as these authorizations are recognized by the WHO.

Despite the decrease in total revenue, largely due to decreased global demand for COVID-19 testing, Co-Diagnostics reported an increase in gross profit percentage to 89.6% compared to the prior year, and total operating expenses of $11.1 million. The company reported a net loss of $6.0 million for Q3 2023.

Co-Diagnostics has a strategy to maintain a strong cash position through expense management and strategic share repurchase. The company is well-capitalized and disciplined in their capital allocation strategy, with additional grant funding potentially available.

The company concluded the call by expressing gratitude to its shareholders and announced the end of the Q&A session. The FDA review timeline for their EUA submission remains uncertain, and they did not provide guidance on initial order sizes. Co-Diagnostics is closer to a commercial launch for their Co-Dx PCR platform and plans to target markets such as skilled nursing facilities for their product launch.

Co-Diagnostics (CODX) holds more cash than debt on its balance sheet, a fact that aligns with the company’s strategy to maintain a strong cash position through expense management and strategic share repurchase.

This could be associated with the company’s active efforts to expand their testing solutions and build capacity in a new manufacturing facility for their Co-Dx PCR platform.