The dream of truly being in a post-Covid-19 world is finally beginning to fade away with the rise of the Delta variant. The future appears more and more set on “management of an endemic pathogen” than the eradication of this foe.
It will always find somewhere to hide out and mutate, according to many experts. And there’s simply no way to vaccinate everyone everywhere in a single rapid sweep.
But management isn’t the end of the world. In fact, it may not be that bad in the grand scheme provided we can adjust our vaccine solutions to new variants over coming years and invest in our testing infrastructure. In a world where many people seem to be committed to a vaccine-hesitant worldview, testing becomes the core need.
That has major implications for stocks in the Covid testing space such as Thermo Fisher Scientific Inc. (NYSE:TMO), Abbott Laboratories (NYSE:ABT), Hologic, Inc. (NASDAQ:HOLX), Fulgent Genetics Inc (NASDAQ:FLGT), Lucira Health Inc (NASDAQ:LHDX), Allstar Health Brands Inc (OTC US:ALST), and Roche Holdings AG Basel ADR (OTC US:RHHBY).
We take a closer look at some of the more interesting recent catalysts in this group below.
Fulgent Genetics Inc (NASDAQ:FLGT) has become a leader in the Covid space. The company’s proprietary technology platform represents a broad, flexible test menu and the ability to continually expand and improve its proprietary genetic reference library while maintaining accessible pricing, high accuracy and competitive turnaround times.
The company has become a leader in commercially launching several tests for the detection of SARS-CoV-2, the virus that causes the novel coronavirus, including NGS and reverse transcription polymerase chain reaction – based tests. FLGT has received Emergency Use Authorization from the U.S. Food and Drug Administration for the RT-PCR-based tests for the detection of SARS-CoV-2 using upper respiratory specimens (nasal, nasopharyngeal, and oropharyngeal swabs) and for the at-home testing service through Picture Genetics.
Fulgent Genetics Inc (NASDAQ:FLGT) recently announced financial results for its second quarter ended June 30, 2021, with highlights including revenue of $153.6 million, growing 790% year-over-year, billable tests delivered approximately 1.6 million, or 9 times the volume of second quarter of 2020, and Gross Margin improved approximately 21 percentage points year-over-year.
Ming Hsieh, Chairman and Chief Executive Officer, said, “The exciting announcements we have made today demonstrate our ability to execute on our strategic initiatives to expand our platform capabilities and reach in a post pandemic world. With the acquisition of CSI Laboratories and commercial agreement with Helio Health, we believe we are now well positioned to grow our presence in the molecular diagnostics and oncologic testing markets. In addition, through the incremental controlling investment in FF Gene Biotech in China we seek to further solidify our foothold in one of the fastest growing genetic testing markets in the world. While we are early in the process of integrating and ramping these investments, we are very excited to be able to offer an expanded menu of genomic testing solutions to our customers with the same precision, service and efficiency that Fulgent is known for. We believe the future is extremely bright for Fulgent as we build out additional ways to capitalize on the growing market for genetic testing across oncology, infectious and rare diseases, and reproductive health.”
Even in light of this news, FLGT has had a rough past week of trading action, with shares sinking something like -13% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 15% in that time on strong overall action.
Fulgent Genetics Inc (NASDAQ:FLGT) managed to rope in revenues totaling $153.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 789.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($383.8M against $121.5M).
Allstar Health Brands Inc (OTC US:ALST) is a specialty pharmaceutical and nutritional supplements company moving toward a potentially prominent position in the Covid management space, especially when it comes to hot-spots in underserved markets around the world.
The company recently announced that it was making a change at the top and updated its guidance on operational focus. Dr. Peter D. Bagi is apparently stepping down from his role as CEO to dedicate more time to medical research projects. The Company has asked Peter Wanner, AllStar’s current CFO, to assume the role of CEO.
Allstar Health Brands Inc (OTC US:ALST), in short, has new leadership. According to the release, Wanner has an accounting background, and has more than 30 years’ experience working with startup companies, public companies, and larger companies experiencing growth related demands. He has extensive international experience, working in Mexico, the UK, the US, and Canada. He also has deep deal-making and fundraising experience, and has been principally responsible for numerous multi-million-dollar funding deals, including a role in a working group that raised $900 million for a Canadian consortium. Wanner was designated a Certified Public Accountant in 1981.
“We thank Dr. Bagi for his time with AllStar, and we look forward to a number of significant and exciting developments ahead,” commented Wanner. “I am grateful to have this opportunity to create value for our shareholders. AllStar is uniquely positioned for growth in multiple healthcare markets, including COVID-19 testing and protection, skin care, nutritional supplements, and other areas.”
The release also contained updated guidance on the strategic focus for ALST: “Management notes that the Company is looking forward to a busy balance of 2021, with an increasing focus on serving underserved vaccine, testing, and virus protection hot-spot communities, particularly in the emerging world. The Company has been gathering data and information related to sourcing supplies for COVID-19 testing and vaccine distribution. The Company has also engaged consultants to better understand where there is the greatest need for testing kits and vaccines among hot-spot regions. Revenues from related operations are anticipated to come from areas outside of North America. The Company plans to sell testing kits to non-government user organizations rather than government agencies.”
Allstar Health Brands Inc (OTC US:ALST)’s Wanner added, “We look forward to the opportunity to help underserved COVID-19 markets. The Delta variant has surged around the world and left many areas in dire need of testing and vaccine supplies. Our research suggests there is an opportunity here to initiate and sustain a pipeline of products to meet that demand.”
Lucira Health Inc (NASDAQ:LHDX) bills itself as a medical technology company focused on the development and commercialization of transformative and innovative infectious disease test kits. Lucira’s testing platform produces PCR quality molecular testing in a single-use, consumer-friendly, palm size test kit powered by two AA batteries.
The LUCIRA CHECK IT COVID-19 Test Kits (OTC) and LUCIRA COVID-19 All-In-One Test Kits (Rx) provide PCR quality clinically relevant COVID-19 result within 30 minutes from sample collection. Lucira’s CHECK IT (OTC) also provides a SMS verified digital LUCI PASS test result back to a user’s phone for work, travel and other places where negative test verification may be required.
Lucira Health Inc (NASDAQ:LHDX) recently reported financial results for the second quarter ended June 30, 2021, including record-high revenue of $12.4 million for the second quarter of 2021, representing 175% sequential growth from the previous quarter of 2021, the commenced sale of LUCIRA CHECK IT COVID-19 Test Kit through OTC channels, which does not require a physician’s prescription, and news that a new production center in the Dominican Republic became operational, with steps underway to reach full manufacturing capacity.
“We are excited that we are continuing to generate strong growth across all areas of the business,” said Erik Engelson, President and Chief Executive Officer of Lucira Health. “Our record-high quarterly revenue is a testament to our product and the strategic foundation that we have built. As the OTC EUA authorization for our LUCIRA CHECK IT COVID-19 Test Kit propelled sales, we continued to forge strategic partnerships, such as our relationship with Meenta which customized a workflow for the LUCIRA All-IN-ONE Test Kit, that was utilized by athletes and individuals traveling to Japan in the summer of 2021 and more recently, AZOVA, which negotiated authorization to sell the LUCIRA CHECK IT Test Kit with AZOVA’s video observation services for travel to Hawaii. We have also invested in establishing an infrastructure to support the accelerating demand for our test kits. We look forward to continuing to establish ourselves as market leaders in the at-home testing space in the second half of 2021 and beyond.”
Even in light of this news, LHDX has had a rough past week of trading action, with shares sinking something like -3% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 30% in that time on strong overall action.
Lucira Health Inc (NASDAQ:LHDX) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($60.6M against $287K).
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