Many of these new tests have been made possible through acquisitions. “We’ve launched thousands of new tests across all areas of genomic health care,” he added. “But we realized our platform could be used for much, much more. “From the time of the IPO (in 2016) until Covid, we were focused on the rare-disease market, especially pediatric rare-disease market,” Perthius said. In his interview with the Business Journal, Perthuis said the company hopes to return to profitability “within the next year or two.”īut his eye was firmly fixed on the longer-term picture. The share price has since hovered around that lower level. They sent shares down 15% to $33.90 in the two trading sessions following the Aug. Investors didn’t take kindly to Fulgent’s earnings report earlier this month showing yet another quarter of red ink. A combination of factors is behind the losses, including recent acquisitions and a plunge in Covid testing revenue that has outstripped the company’s cost-cutting efforts. One of those is Fulgent’s income statement: the company has reported three consecutive quarters of losses totaling $50 million. The transition from the Covid testing juggernaut has had some hiccups. But last year, as the Covid pandemic subsided and home test kits became widely available, the test analysis contracts began drying up and attention turned to Fulgent’s post-Covid strategy. So much work had come in that the company temporarily leased huge lab space in the Houston area to handle the increased test volume. Fulgent then sought – and won – a series of multimillion-dollar lab analysis contracts including from the New York City public school system. “We’ve grown non-Covid revenue eight-fold.”ĭuring the initial phases of the Covid pandemic, Fulgent entered the Covid test analysis market by successfully bidding on lab analysis contracts run by the Los Angeles County health department. “We’re now a $260 million laboratory business, as opposed to the tiny $30 million genetic testing business we were pre-pandemic,” said Brandon Perthuis, Fulgent’s chief commercial officer. And it’s a much larger company than before the pandemic hit. Now the company is transitioning to a diverse platform of clinical diagnostics and drug development business lines, using some of the cash left over from the Covid testing bonanza to fuel the shift. In its second-quarter earnings report released earlier this month, Covid testing accounted for less than $1 million in revenue for Fulgent, down from $128 million for the same quarter two years ago. For El Monte-based clinical diagnostic testing company Fulgent Genetics Inc., the Covid testing surge that catapulted the company from $32 million in annual revenue to the doorstep of $1 billion in just two years has now all but ended.
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