Co-Diagnostics Expects New Royalty Structure to Lift Revenue and Expand Customer Base  

Wednesday, 11. September 2019 13:00

New York City, NY, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Analysts for Co-Diagnostics, Inc. (Nasdaq: CODX), a molecular diagnostics company with a patented diagnostic testing platform, maintained their Buy rating with a target well above the current price following news last week that increased royalties from their expanded license agreement with LGC, Biosearch Technologies are expected to bring revenue growth and boost adoption of the CoPrimer technology.

The recent joint press release indicates that Co-Diagnostics will benefit from LGC’s sales force to increase their CoPrimer user base for research products included under the expanded agreement. Co-Diagnostics CEO Dwight Egan also remarked that the royalty structure has been increased from the original license agreement between Co-Diagnostics and LGC, which was signed roughly a year ago and limited to AgBio applications. Since that time, LGC has launched their own-labeled BHQplex CoPrimer product.

LGC is described as an international leader in the extended life sciences sector. Recent coverage for CODX by Maxim Group reports that the 175-year-old company has 20,000 customers and 12,000 labs in 200+ countries, including some of the world’s largest seed and livestock producers. At the present time LGC is owned by funds affiliated with KKR, although last month Bloomberg reported that KKR was considering a buyout for LGC in the $1.2b range following an annual report that showed an Adjusted EBITDA of £86.4m (up 18.5% from 2017), which represents a margin of 26.1%.

LGC also owns all of or a controlling interest in several molecular diagnostics companies, including Douglas Scientific and Lucigen Corporation. With such a large footprint and impressive revenue growth, combined with Co-Diagnostics’ increased royalties and wider scope of products under the new agreement, it is easy to see why H.C. Wainwright and Maxim Group maintained their $2.00 price target for CODX after the news. The international sales efforts of LGC will surely augment Co-Diagnostics’ own marketing endeavors, the budget for which itself doubled according to their most recent 10-Q filing.

What’s more, the release points out that as LGC customers move to commercialize products built on the CoPrimer platform, those deals would be subject to license agreements directly with Co-Diagnostics, making the LGC expansion a direct pathway to even greater licensing revenue.

Disclosure: Co-Diagnostics Inc is a client of BDA International.

About BDA International, Inc.:

BDA International is an independent global Investor Relations firm offering a wide range of IR-related analysis, research and advisory services. In particular, we provide and are compensated for service packages that include strategic action plans and investor/market perception studies to help entities improve communication with customers and investors, and to increase their visibility. BDA International has received no direct compensation related to this release but its principles hold shares of client companies in our personal portfolios, including CODX. BDA International accepts sole responsibility for the content and distribution of the foregoing release, which does not contain any previously unpublished or non-public information. Parties interested in learning more about the relationship between BDA and CODX may do so via the contact information at the bottom of this release.


The information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained in this analysis reflect our current judgment and are subject to change without notice. We do not accept any responsibility or liability for any losses, damages or costs arising from an investor’s or other person’s reliance on or use of this analysis. This analysis is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities, nor a recommendation of any security, although members of the BDA may at times hold a position in the company covered within the article. Co-Diagnostics is a client of BDA International. Past gains are not a representative of future gains. The opinions herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plans,” “should,” “potential,” “forecast,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. A company’s actual results could differ materially from those described in any forward-looking statements contained herein. BDA is not a licensed broker, broker dealer, market maker, investment advisor, analyst or underwriter. We recommend that you use the information found herein as an initial starting point for conducting your own research in order to determine your own personal opinion of the companies discussed herein before deciding whether or not to invest. You should seek such investment, tax, financial, accounting or legal advice appropriate for your particular circumstances. Information about many publicly traded companies and other investor resources can be found at Investing in securities is speculative and carries risk.

Investor Relations Contact:
M. Dost                                                               
BDA International

Related Links: 
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.