Breakout Stocks Corona Virus Stocks
American Bio Medica Is On The Verge of Breakout: Should You Buy?
The American Bio Medica Corporation (OTCMKTS:ABMC) has seen its stock gain significantly over the course of the week so far. The ABMC stock has managed to soar by as much as 85% this week and much of the gains could be attributed to a significant announcement from the company on Wednesday.
Distribution Agreement with Co-Diagnostics
On Wednesday the company announced that it signed a distribution agreement with Co-Diagnostics. The agreement has granted ABMC the non-exclusive right to market and sell the Co-Diagnostics Logix Smart COVID 19 test in the United States.
As per the provisions of the agreement between the two companies, ABMC is going to market the test Clinical Laboratory Improvement Amendments certified clinical laboratories.
In addition to that, it will also be in accordance with the Emergency Use Authorization that was issued by the United States Food and Drug Administration in April this year.
The Test
The Co-Diagnostics Logix Smart COVID 19 test takes into account the fluid samples from the lower respiratory tract of a patient and delivers the result in 2 hours. Considering the fact that the number of coronavirus cases are rising yet again in the United States, there could be significant demand for this test.
Mesilla A. Waterhouse, who is the Chief Executive Officer of ABMC, spoke about the importance of the distribution agreement. She stated that the test is capable of being run on high throughout machines. She went on to add that the Co-Diagnostics Logix Smart COVID 19 test is a good addition to the IgG/IgM antibody test that is already distributed by the company.
Financial Performance
While the stock has performed admirably this week, it is also important for investors to take a look at ABMC’s financial performance. The company announced its financial results for the three months as well as the six months period that ended on June 30 last month.
ABMC generated net sales of $1758000 in the quarter and that reflected a significant jump from the $958000 generated in the prior-year quarter. On the other hand, the net sales for the half-year stood at $2486000, which was again higher than the $1888000 worth of net sales in the first half of 2019.
ABMC also swung back to profits in the second quarter. It generated a net income of $16000 in the second quarter, as opposed to losses of $155000 in the prior-year period. However, in the six month period, the operating loss stood at $255000. That being said, in the first half of 2019, ABMC had made an operating loss of $329000.
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