Fueling the increase is an annuity of $130,000 to $135,000 per machine annually. GenMark's gross margin also rose from 27% to 40% for the quarter.
Alongside its first-quarter earnings on May 5, the company upped the range to $120 million to $130 million.įirst-quarter 2020 sales hit $38.7 million, an 80% gain over the first quarter of 2019.
The revised estimates peg 2020 revenue in the range of $112 million to $122 million, representing a year-over-year increase of 27% to 39%. GenMark, then, increased its revenue guidance again. GenMark's stock really started to climb after it increased 2020 revenue guidance on April 7. On May 19, the FDA granted the authorization, causing over 18 million shares of GenMark's shares to trade in a single day. GenMark applied for Emergency Use Authorization of its COVID-19 test from the Food and Drug Administration (FDA) on May 11. This coincides with GenMark's announcement that it was shipping its new COVID-19 diagnostic test. 28 onward, trading volumes spiked to millions of shares daily. GenMark's stock typically traded a few hundred thousand shares per day. However, investors started clamoring for the stock much earlier than the financing. After an initial drop, the stock returned and continues to trade around $12 per share. The stock had traded in the $11 to $12 range in the days leading up to the announcement of the financing. On May 11, GenMark announced it successfully raised $80 million in financing by issuing approximately 8.34 million shares at $9.65 per share. If that turns up negative, then the specific diagnostic for SARS-Cov-2, the virus responsible for COVID-19, is run next. Importantly, the management team highlighted on the first-quarter earnings conference call that suspected COVID-19 patients often get screened with GenMark's respiratory panel first. On the opposite end of the spectrum, a large academic hospital can get an ePlex machine capable of running 96 tests over the same time period. For example, rural hospitals can get a small-scale machine capable of running 12 tests during an eight-hour shift. The rapid test platform also offers a range of capacity. GenMark highlighted that the coronavirus test drove 80% of placements of the company's ePlex diagnostic platform during the first quarter.
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