GenMark’s Q1 Could See a Huge Boost From COVID-19

By Chris Lange Published Apr 8, 9:43AM EDT

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GenMark’s Q1 Could See a Huge Boost From COVID-19 — © sturti / Getty Images

GenMark Diagnostics Inc. (NASDAQ: GNMK) shares shot up early on Wednesday after the company provided an update on its quarterly numbers and where it stands with its coronavirus test.

Testing for the coronavirus has become a lucrative field. A couple of other companies specifically dealing with the testing aspect are Quest Diagnostics Inc. (NYSE: DGX | DGX Price Prediction), Co-Diagnostics Inc. (NASDAQ: CODX) and Becton, Dickinson and Co. (NYSE: BDX). Their stocks have seen solid gains since they entered the coronavirus test business.

For the first quarter, GenMark expects to see total revenues of $38.7 million, representing an increase of approximately 80% over the first quarter of 2019. Revenues from its ePlex are expected to be roughly $34.3 million, an increase of 119% year over year. Also, the average annuity per analyzer is expected to be $214,000, up 29%.

Overall, COVID-19 has had a positive impact on GenMark’s first-quarter placements and revenue. Approximately 80% of gross placements this quarter included interest in COVID-19 testing. SARS-CoV-2 consumable revenue accounted for about 5% of total ePlex revenue.

During this quarter, the company also received FDA Emergency Use Authorization for its ePlex SARS-CoV2 Test.

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Scott Mendel, interim president and chief executive, commented:

GenMark is honored to play an important role in fighting the COVID-19 global pandemic. Our sample-to-answer test enables healthcare providers to determine if a patient has COVID-19 in under two hours and is a critical diagnostic solution for hospitals. I’m extremely proud of our team’s hard work throughout this crisis as we continue to work at maximum capacity to provide our ePlex SARS-CoV-2 test and Respiratory Pathogen panel.

The stock was last seen up about 20% at $5.38 a share, in a 52-week range of $3.36 to $8.17. The consensus price target is $10.00.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.