UPDATE: Todos Medical Reports $2.0 Million in Revenue for the Third Quarter of 2020
- Received first payments from $47.5 million contract with Wisconsin client on October 9, 2020
- Wisconsin client upped avg. kit purchases from 2,100+/day to 3,500+/day on October 12, 2020
- Todos has completed equipment purchases for signed Q3/20 reagent supply agreements
- Existing contracts have the potential to deliver over $60 million in revenue to Todos by end Q2/2021
NEW YORK, NY, REHOVAT, ISRAEL, SINGAPORE, Oct. 14, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Todos Medical Ltd. (OTCQB: TOMDF), an in vitro diagnostics company focused on distributing comprehensive solutions for COVID-19 screening and diagnosis, and developing blood tests for the early detection of cancer and Alzheimer’s disease, today announced total revenues of $2.0 million for the third quarter of 2020 (the “Third Quarter”). The revenues were primarily derived from sales of ANDis 350 automated extraction machines and related extraction reagent kits, as well as deposits for ongoing reagent supply agreements.
“In the third quarter, we really strove to build a sustainable business model that would allow us to become a significant player in the COVID-19 PCR testing space, as PCR remains the gold standard for testing in the United States,” said Gerald E. Commissiong, President & CEO of Todos Medical. “Critically, we have received our first payments from our largest client from Wisconsin who is rapidly scaling its capacity with our solutions in the face of a marked increase in demand for PCR testing from skilled nursing clients. We have been supplying this client with sufficient reagents to perform over 2,100 tests per day over the last couple of weeks, and this week we increased the order size to over 3,500 tests per day. We are now in the process of implementing our liquid handler/automated-extraction/ RT-PCR equipment solution with this client, and expect to build sufficient capacity in the fourth quarter of 2020 to run 84,000 tests per week to meet their existing contracted demand. We expect to start supplying them with qPCR kits in the fourth quarter that we believe will increase revenue/test by 250%.”
Mr. Commissiong continued, “We believe emerging COVID-19 surveillance and screening solutions being deployed at greater scale will continue to increase the need for COVID-19 PCR testing. In the initial phase of implementing Todos’ business model, we focused on expanding our ANDis 350 automated extraction installation base and leveraged the performance of that equipment to secure long term supply agreements with a number of core clients. As this has been accomplished, our current goal is to assist our clients to achieve rapid growth. To succeed in this regard, we recognized we must help our clients address the two major obstacles to growth which are finding qualified staffing in a tight labor market and improving on quality control that is so vital to COVID testing. We believe we have addressed these impediments to growth on behalf of our customers by securing the purchase of liquid handlers. Each liquid handler allows for testing to be increased by a minimum of five hundred percent while improving quality control through automation with the benefit of reducing labor requirements. Additionally, we intend to add additional molecular and immune-based tests to our COVID-19 offering to allow labs and healthcare providers to better serve their clients as the science of COVID-19 evolves.”
In the third quarter of 2020, the Company successfully transitioned its revenue from primarily big-ticket equipment sales in the first half of the third quarter, to recurring revenue from extraction reagent kit sales in the second half of third quarter. The Company is currently in the validation process with five clients who are implementing one of Todos’ COVID-19 PCR lab offerings, which expand beyond extraction reagents to also include FDA EUA authorized qPCR and sample collection kits.
- July 2020: $550,000 in revenue driven primarily driven by ANDis 350 installation
- August 2020: $1,190,000 in revenue driven primarily by deposits for PCR package
- September 2020: $350,000 in revenue driven primarily by extraction reagents sales
- October 2020 through October 9th: $345,000 was driven by growth in extraction reagent sales
The Company expects to generate revenue from FDA EUA approved qPCR kits sold in our PCR packages in November 2020. The Company has entered into contracts that have the potential to generate revenues of $60 million by the end of the first half of 2021. In each of the Company’s contracts, the Company has a priority right to sell testing kits packages to each of its clients for at least the first 75,000 tests per day (equivalent to 525,000 tests per week).
“Provided that we continue to execute at the pace we currently are in the implementation of our lab solutions for our clients, we expect to be cash flow positive in the middle of the fourth quarter of 2020,” said Dan Hirsch, CFO of Todos Medical. “We do not intend to effect a reverse split of the Company’s common stock until we become cash flow positive in our COVID-19 testing business. Once profitable, we will consider buybacks if warranted. The COVID-19 PCR laboratory testing market is growing significantly month over month in the United States, and we expect this trend to continue as economies reopen and we head into the fall and winter seasons when seasonal illnesses, including influenza, become more prevalent. We believe our suite of testing solutions allow us to be a one stop shop for COVID-19 testing solutions in the United States. Further, we believe the mobile labs solution that we will be supplying have the potential to scale testing capacity in areas not typically served by COVID testing and will allow for potentially ultra-rapid turnaround times, a potentially significantly valuable addition to the US testing paradigm.”
For information related to Todos Medical’s COVID-19 testing capabilities, please visit www.todoscovid19.com
For testing and PPE inquiries, please email firstname.lastname@example.org.