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Co-Diagnostics CEO on COVID-19 testing delays: We're 'not part of that log jam'

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Co-Diagnostics CEO Dwight Egan, joins Yahoo Finance's Zack Guzman to discuss the company's second-quarter earnings results, as it plans to deploy new flu and coronavirus test panels.

Video Transcript

ZACK GUZMAN: We've been talking to the CEO of a testing company here, as we've seen the US, as well as other countries around the world, bolstering efforts. Co-Diagnostics, one of them, a Utah-based company, have been working on a lot of those tests. And we've seen shares in that company rise by more than 1,500% here on the year. The shares have given back a bit here after reporting Q2 results. That came in a little bit lighter than expectations.

So what's really going on here as we see Q3 kick off? I want to bring on the CEO of Co-Diagnostics Dwight Egan joins us once again. And Dwight, thank you for coming back here. I mean, we saw expectations were set there. You came in a little bit below those in Q2. What are you seeing so far in Q3 as the struggles on the testing front continue?

DWIGHT EGAN: Zack, it's good to be with you. And we're very excited about our position midway through the third quarter. We reported revenues in excess of $24 million for Q2 and profits, actually, of over $12 million. So we think that the numbers sort of speak for themselves in terms of how the company was doing.

Midway through the third quarter, we announced that we had in the neighborhood of $50 million worth of tests year-to-date that had been ordered. So we announced about $1.5 million in the first quarter, $24 million and change in the second, leaving us with about $24.5 million in orders that we're sitting as a midpoint in the quarter. And we're midway through and experiencing good robust sales. So we think we're going to have a nice third quarter.

ZACK GUZMAN: Yeah, you mentioned revenue $24.4 million there for the quarter. The expectation was $26.4 million, so a little bit under there. But when we think about the partnerships that you guys rolled out, we had the CEO of clinical reference laboratory getting that FDA fast track approval for its saliva test, obviously partnered with you to get that done.

But when we think about delays in testing, that seems to be a big issue right now. If you send it in, have to wait days to get results, it doesn't do much good. So how much emphasis for you guys is being placed on, I guess, making those test results quicker to Americans? And what really needs to be solved for you guys to see a better Q3 here?

DWIGHT EGAN: Zack, I don't think that Co-Diagnostics or Clinical Reference Lab are part of the problem in terms of delayed results. We have terrifically fast results. One of the neat things about our relationship with Clinical Reference Lab is that they have an incredibly high throughput facility. They do on the neighborhood of 300,000 tests-- that's all kinds of tests-- a day in that facility.

And they have a world-class saliva-based test that is really, I think, the best out there. It's a self-administered test. It can be done at home, at work, in any kind of a setting without having a health professional supervising it. And then when it gets to their lab, they have the biggest, baddest machines to do this that you can imagine.

It's a fully automated system from the time the tests arrive at their dock to when they're produced. So if you get a test on a Monday afternoon, you're likely to have a result by the next evening or early the next morning, being Wednesday. So this is how we test our own business. Our tests in our laboratory get tested once a week through this and our accounting staff and others every two weeks.

And it's an incredibly fast turnaround. They get their results on the internet, I think. We're not part of that logjam. We have high throughput facilities and great tests.

ZACK GUZMAN: And lastly, before I let you go, I mean, the first time you came on this show was actually before it was a problem here in the US. We were talking about what you were doing globally. And then the pandemic hit the US. So what are you seeing globally now as you expand testing to other countries now grappling with this as well, as before it was a lot more contained, now impacting much more than just the US?

DWIGHT EGAN: We're seeing great activity overseas, Zack. As you know, we have our own manufacturing plant in India. And they are like the third hot spot, third biggest hot spot in the world right now. So we're doing robust business in India, places like Peru, Mexico. We're doing a lot of very exciting things overseas. That's where it all started for us. We were the first US company to have a CE mark for that COVID-19 test.

But it has continued to be brisk business, and we expect that to continue, especially with our new forthcoming ABC test, which is a multiplex test for flu A, flu B, and COVID-19 all in one test that will help us with the onslaught of flu that's going to be coming. You know, it's estimated 100 million cases just in the US in the near term going to descend on us.