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

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New York City, NY, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Analysts for Co-Diagnostics, Inc., 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 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 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.

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.

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Globe Newswire: 12:00 GMT Wednesday 11th September 2019

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