GenMark Gains on Higher Guidance

GenMark Diagnostics, Inc. (NASDAQ:GNMK) raised its sales guidance for 2020. GenMark said it now expects FY20 sales of $112 million to $122 million, up from earlier estimates of $100 million to $110 million.

The company, headquartered in Carlsbad, Calif., projected first-quarter revenue to be approximately $38.7 million, representing an increase of approximately 80% over the first quarter of 2019.

The company goes on to say COVID-19 positively impacted first-quarter placements and revenue. Approximately 80% of gross placements included interest in COVID-19 testing. SARS-CoV-2 consumable revenue accounted for approximately 5% of total ePlex revenue.

Gross margin expected to be approximately 40%, compared to 27% in the first quarter of 2019.

The company placed net 54 ePlex analyzers, concluding the quarter with a global installed base of more than 580 ePlex analyzers, an increase of 48% versus the first quarter of 2019.

GNMK also received Food and Drug Administration Emergency Use Authorization for ePlex SARS-CoV-2 Test.

According to CEO Scott Mendel, "GenMark is honored to play an important role in fighting the COVID-19 global pandemic.

"Our sample-to-answer test enables healthcare providers to determine if a patient has COVID-19 in under two hours and is a critical diagnostic solution for hospitals. I'm extremely proud of our team’s hard work throughout this crisis as we continue to work at maximum capacity to provide our ePlex SARS-CoV-2 test and Respiratory Pathogen panel."

The revenue projection represents year-over-year growth of 27% to 39%. This compares to previous revenue guidance of $100 million to $110 million.

The company plans to provide additional full year financial guidance updates on its quarterly earnings call to be scheduled in early May.

Shares prospered 56 cents, or 12.5%, to $5.06