TEMPLE CITY, Calif., Sept. 09, 2020 (GLOBE NEWSWIRE) -- Fulgent Genetics, Inc. (NASDAQ:FLGT) ("Fulgent Genetics" or the "company"), a technology company providing comprehensive testing solutions through its scalable technology platform, today announced a new partnership with Miami-Dade County in Florida for COVID-19 testing. Please note that any opinions, estimates or forecasts regarding Fulgent Genetics's performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Fulgent Genetics or its management. All of the above, Rachel. But because of the additional capabilities that we made in terms of reimbursement, the great traction that we've seen in reimbursement because we've signed on so many more core customers and we've proven ourselves for the capabilities and the efficiencies that we've had in the lab, we've seen a tremendous uptick in our core business in the back half of this year. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gross margin improved almost 19% points sequentially. We have not played a major role in pharmacogenetics in the past. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. And the results we delivered today will continue to enhance our position in this area because of our technology, because of our biochemistry, and because of our pipelines. As we walk into each opportunity, we need to make sure we have a sound business model. OK. Great. So I think our longest one we signed so far has been 24 months. The investment we made in our technology stretches back almost a decade and enable all the facets of our business, which produces notable efficiency and scalability. Listeners should not rely on any forward-looking statements as predictions of future events and should listen to management's remarks today with the understanding that actual events, including the company's actual future results, may be materially different in what is described in or implied by these forward-looking statements. And I'll turn it over to Brandon, who can give more commentaries both in terms of the number of customers, the quality of their customers, as well as the size of programs that they're thinking about for our core business. This allows for many more appointments to be available with shorter wait times. That's a fact. So to add to Paul's points, we'll continue to invest carefully to enhance our position in terms of our technology and also our market positions. You've always obviously been very nimble here with the COVID response, which has been impressive. The nasal swab tests are being offered by the county through a partnership with Fulgent Genetics and are the same tests given at the county’s various drive-up and walk-up testing sites. Is it carrier? Thanks, Ming. There are three particular areas of strength I would like to elaborate on, especially in the quality and the scale of our customer base. So we continue to pump out new tests, looking at different disease, different phenotypes. We continue to believe that the COVID-19 testing is quite durable, right? Third, our capacity. Total GAAP operating expenses were $11.9 million for the third quarter, up from $6.9 million in the second quarter. But that includes our core genetic tests on top of COVID. Congrats on the nice quarter, you guys. Powered by Madgex Job Board Software. [Audio gap] the third quarter was $104 million in cash, cash equivalents, with no debt. Thank you for all that color. A lot of our wins have been organic. The company’s reports filed with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 13, 2020 and the other reports it files from time to time, including subsequently filed quarterly and current reports, are made available on the company’s website upon their filing with the SEC. And then from an operational sense, we can quickly deviate the resources into other areas that we believe will be fruitful for the company. We have grown our headcount from 151 at the beginning of 2020 to approximately 500 employees and consultants today. How Did Fulgent Genetics Stock Perform in 2020? Definitely, we see the business opportunities. Cumulative Growth of a $10,000 Investment in Stock Advisor, Fulgent Genetics, Inc. Common Stock (FLGT) Q3 2020 Earnings Call Transcript @themotleyfool #stocks $FLGT. I'm excited to announce today we have won the opportunity. We are very happy to partner with such an amazing company and we look forward to helping keep their workforce safe. Fulgent Offers Coronavirus Testing Switching gears, I'd like to briefly touch on the opening of our Houston lab, which we announced in August. Since March 2020, the Company has commercially launched several tests for the detection of SARS-CoV-2, the virus that causes the novel coronavirus (“COVID-19”), including NGS and reverse transcription polymerase chain reaction (“RT-PCR”) - based tests. FULGENT GENETICS, INC. (Exact name of registrant as specified in its charter) Delaware 81-2621304 (State or other jurisdiction of incorporation or organization) (I.R.S. Fulgent will continually invest in these areas. It would demonstrate several things: one, the viability, and the permanence of our business model; two, the efficiency, as well as the scalability of Fulgent Genetics. We were happy to see what they did actually, to reward those laboratories that can actually deliver on turnaround time. The COVID-19 pandemic has continued to challenge both our health and our way of life this year. We are a genetic testing laboratory built by engineers, founded in technology. Thanks. With a modest level of investment in the infrastructure and headcount, we were able to grow our test volume almost 50 times or 5,000% of that in the third quarter of last year and by more than 5 times or 500% of that in the second quarter of this year. And then during the earlier on part of this year, in March, April, and May, during the first lockdown, that impacted the core or the genetic testing business across the industry. Search Bioinformatics jobs in Los Angeles, CA with company ratings & salaries. While we haven't announced all of our wins, we will continue to publicly announce large strategic wins to the extent we can. This program went live in October and we are now collecting thousands of samples per week throughout New York City. So number one, our total fixed assets, and the equipment purchases for the year is going to be between $10 million and $15 million. We remain well-stocked to continue to fuel our growth plan. We believe this combination of delivering the gold-standard RT-PCR test at scale, in timely fashion, combined with a management system that makes the process seamless for everyone, is key to a successful testing protocol,” Perthuis added. Fulgent was founded in 2011. “Miami-Dade residents now have improved access to reliable and fast COVID-19 testing. Have a great day. The Blueshirt Group
Hi. I do not believe that COVID-19 will go away easily. I would like to now turn the call over to Paul Kim, who will walk you through our third-quarter financial performance. Despite massive increase in volume that we experienced, we delivered results to our customers without any issues and with best-in-class turnaround time for RT-PCR results. Our record growth in the third quarter is a true testament to the scalability of our technology platform. This system also includes heat maps and contact tracing functionality. Today, we strive to create the most effective and wide ranging tests on the market. Due to the COVID-19, I think it slowed down a little bit our introduction in this kind of products. I want to visit genetic testing, and Paul, some of your comments with regard to how to think about that portion of the business for the year. Customers are using Fulgent for hereditary cancer, cardiovascular genetics, neurological genetics, reproductive health, and other newer tests that we've launched in the last 12 to 18 months. That's an excellent point. The Blueshirt Group
I will now turn the call back to Nicole for any final comments. There have been some attention-grabbing headlines regarding cheap and fast antigen testing. Results will be delivered to patients within 24 to 48 hours. Clients are choosing Fulgent COVID testing offerings for a variety of reasons, including our rapid turnaround time, supply chain availability, capacity, EUA approvals, our technology platforms, and user-friendly systems. So we think when our expanded portfolio of customers is running at full speed when they're seeing the same number of patients they saw pre-pandemic, could be a pretty powerful turning point for our company. We welcome the news about the very promising vaccine development from Pfizer today since we have made a $2.5 million investment in a private company called Boston Molecules during this quarter. As Ming mentioned, we delivered more than 1 million reports during the third quarter, an almost fiftyfold increase year over year, and an almost fivefold increase sequentially. So we're also on the private side as well, not just the Medicare and Medicaid from the CMS perspective. So, yes, we continue to develop new tests. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. How long do you think that lasts thereon? We launched the platform in 2019 to make a clinical-grade genetic testing available to individuals in the comfort of their homes without need to visit a doctor office. Brandon Perthuis -- Chief Commercial Officer. Fulgent Genetics, Inc. (NASDAQ:FLGT) Q3 2020 Earnings Conference Call November 9, 2020 4:20 PM ET Company Participants Nicole Borsje - Head, IR Ming Hsieh - … Results will be delivered to patients within … This rate releases our valuation allowance on our deferred-tax assets and incorporates our projected annual tax rate for the year. At the same time, we are taking market share from other people. Who knows? In fact, it's hardly a competitor. Fulgent Booking System 1.0 - Appointment Free COVID-19 Testing The City of Long Beach is providing free COVID-19 testing at two additional locations. Great. Returns as of 12/15/2020. Our original offering consists of three tests: carrier screening, newborn screening, and adult wellness. However, data presented in antigen EUAs show that at day 6 and 7 the sensitivity drops measurably, and positive cases are already being missed. Next, we have Kevin DeGeeter of Oppenheimer. Meaning that our COGS per test during Q3 on a full GAAP basis was $25. So what that tells us is, if we continue on with the momentum and our capabilities as a company, our outlook for our core business in 2021 should be very, very favorable. For example, what are the terms, and how long are they and do you have any exclusivity agreements? 429 open jobs for Bioinformatics in Los Angeles. These contracts have been with government agencies, municipalities, big companies, you name it, colleges, sports conferences [Audio gap], Rachel. We see the second half of 2020 as a continuation of our inflection point in our business, which began last quarter. This has really been important for patient care and contact tracing and has been a huge differentiator for Fulgent. We're not going away anywhere, and we believe we can compete in any kind of environment. So can you just comment a little bit more about what's driving that, what portion of the business? Antigen testing is intended to be used for only symptomatic patients within seven days of symptom onset. During the third quarter, greater than 90% of our COVID-19 results were delivered within 24 hours, some as fast as eight to 10 hours, which our customers would agree is pretty incredible. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. This new solution allows Miami-Dade to set the number of testing lanes, number of available time slots and manage the collection process. It has been important when it comes to winning RFPs and government contracts. Indeed may be compensated by these employers, helping keep Indeed free for jobseekers. Great. We believe that having this reimbursement agreement in place will continue to drive business from the customers in a way that we haven't seen prior to the pandemic. All of this is done in the pursuit of bettering the everyday lives of our customers. The EUAs of several antigen tests state that a negative result should be followed up by RT-PCR, and the CDC has been clear that RT-PCR is the gold standard to detect SARS-CoV-2. We have seen increase of volume of our core genetic tests for a number of new customers. “Miami-Dade residents now have improved access to … Furthermore, we have submitted an EUA for our next-generation sequencing-based COVID-19 test, which is still pending with the FDA. And as Ming indicated, the CMS reimbursement rate is $100, and starting January 1, it stays at $100 as long as you're able to meet the turnaround time. To that end, we believe the investment we made to build our COVID-19 test initiatives will continue to benefit our business in long term. Those included Northwestern University using our Picture at-home test for their students or a return to school program and the Pac-12 conference using our test for athletic programs and sports officials. Erin, from a numbers perspective -- this is Paul. Fulgent Genetics is another positioned -- well positioned to meet the time challenges, but also, we'll be able to perform in this market at any price to compete in this market. Fulgent Genetics’ proprietary technology platform has created a broad, flexible test menu and the ability to continually expand and improve its proprietary genetic reference library while maintaining accessible pricing, high accuracy and competitive turnaround times. So we definitely could program or repurpose some of those equipment, getting into the mix of our complete automation for the lab automation. All rights reserved. This will lead to false-negative results, which are particularly troublesome. This translated to approximately $2.6 million charge below operating expenses. And before COVID hit, we guided the street to $40 million of business for the year. Can you just walk us through how we should think of the core business versus COVID revenue in that guide? Investor Relations Contact:
Thanks. “Rapid turnaround times for testing are vital to limiting the spread of COVID-19, and Fulgent Genetics promises efficient processing, within 24 to 48 hours of receipt of the sample.”. When it comes to contact tracing, the turnaround time needs to be 24 hours or less for this test to be as powerful as possible. California State University-Long Beach. Thank you for taking my questions. Sort by: relevance - date. 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