Todos Medical Ltd (OTCQB:TOMDF) CEO Gerald Commissiong provided an update to shareholders on Friday, saying it is “squarely focused” on COVID-19 for the immediate term and expects revenues generated from sales of its COVID-19 testing solutions to be a near-term driver of business.
"We expect the revenues we generate from sales of COVID-19 testing solutions to drive the business in the near-term and position the company to capitalize on the very significant programs we have in cancer and Alzheimer’s diagnostics," Commissiong said in a letter to shareholders.
The Todos Medical CEO noted that its immediate attention is on providing solutions to address testing, tracing and immune support in response to the COVID-19 pandemic, positioning it as a ‘one stop shop’ for all things COVID testing related.
Todos Medical said it received its first payments from a $47.5 million contract with a Wisconsin-based client on October 9, 2020, adding that existing contracts have the potential to deliver over $60 million in revenue by the end of the second-quarter of 2021.
"Todos has optimized a workflow with Tecan liquid handlers currently being implemented at our Wisconsin client that will allow their lab to reach at least 20,000 diagnostic tests per day and with pooling strategies being deployed for screening purposes, this client is expected to reach capacity to conduct over 100,000 tests per day," said Commissiong.
"As they scale, we expect our sales to scale with them and we will be working very closely with them to overcome any barriers they have to meeting their full potential."
Commissiong said the company has also secured rights to several COVID-19 tests that are currently awaiting emergency use authorization (EUA) approval from the Food and Drug Administration (FDA), including point-of-care Polymerase Chain Reaction (PCR) tests that will compete with the Abbott ID Now and Cepheid point of care molecular tests.
The company also expects to enter into an agreement to secure distribution rights to lab-based tests to more comprehensively evaluate COVID-19 immune-status. Todos Medical intends to first bring to market a lab-based test that will monitor PCR positive COVID-19 infected patients for active viral load, and thereafter a point-of-care test that can be used to replace antigen testing for screening and surveillance purposes. It said it will be releasing data from its ongoing studies in Israel in the coming weeks.
He added, though, that Todos Medical has decided to push back its Nasdaq up-listing until the first half of 2021, after “we have demonstrated several more months of growing sales and commercial execution,” focusing instead on creating value for its shareholders.
On Thursday, Todos Medical reported revenue of $867,000 in October 2020, a 147% month-over-month increase that was driven by extraction reagents sales. It said current weekly orders for extraction reagents have increased to over 40,000 units per week for the company’s legacy clients.
Todos is helping its five largest contracted clients to complete qPCR kits validations and expects those qPCR kit sales to start flowing from the end of November 2020. The company will soon have the capacity to run more than 350,000 tests per week.
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