Monkeypox Virus Test Could Yield Revenue for Its Creator

The Utah-based diagnostics firm has multiple shots on goal with this specific molecular test and with its convenient, fast testing platform, both in development, noted an H.C. Wainwright & Co. report.

Co-Diagnostics Inc. (CODX:NASDAQ) just finished designing a test for the monkeypox virus, reported H.C. Wainwright & Co. analyst Yi Chen in a May 27 research note.

“The company’s monkeypox PCR (polymerase chain reaction) test has the potential to generate significant revenue for Co-Diagnostics if monkeypox turns out to be a fast-spreading virus of global concern,” Chen wrote.

To develop this new diagnostic, the Utah-based firm used its proprietary CoPrimer technology and its own software, noted Chen.

“As demonstrated by the company’s Logix Smart COVID-19 test, CoPrimer technology enables the development of affordable, accurate, high-quality molecular testing products,” the analyst commented.

Should monkeypox proliferate, a need and demand for a test for it, like Co-Diagnostics’, will emerge and grow, Chen pointed out. This is because traditional viral culture and serology testing is not recommended for this virus due to its long incubation period and close antigenic relationship between surface antigens.

“Molecular tests become the most rapid, sensitive, and accurate testing option for monkeypox,” Chen added.

As for Co-Diagnostics’ CoDx system, also in development, management intends to start clinical trials this summer, and submission of an emergency use authorization application to the U.S. Food and Drug Administration could follow, later this year.

This at-home/point-of-care PCR diagnostic platform, also based on the company’s CoPrimer technology, can test for numerous viruses and bacteria, including COVID-19 and other infectious diseases. Users can activate the device through a smartphone app. Diagnostic results take about 30 minutes to generate and when ready, are delivered to the phone.

“This device is designed to provide accurate molecular test results rapidly, onsite, at an affordable price, which could help monitor the viral spread among various types of public venues, schools, and workplaces,” wrote Chen.

CoDx could eventually generate revenue for Co-Diagnostics, too, highlighted Chen.

“The Co-Dx platform’s ability to integrate syndromic multiplex assays for respiratory and other infectious diseases may potentially drive topline growth in the future,” he added.

H.C. Wainwright has a Buy rating and a $12 per share price target on Co-Diagnostics. As of this morning, the current share price is around $5.50.

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Disclosures for H.C.Wainwright & Co., Co-Diagnostics, Inc., May 27, 2022

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Yi Chen, Ph.D. CFA and Raghuram Selvaraju, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Co-Diagnostics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of April 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Co-Diagnostics, Inc.

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