Ann: Genova Diagnostics Partnership Commences in the US, page-2

On the face of it today's announcement is a far more significant announcement than the one about the Persian Gulf (aka Arabian Gulf), simply because there are over 330m people in the US and only about 65m in the Gulf Cooperation Council countries. Also average per capita wealth would be much higher in the States than the Gulf I think.

Genova Diagnostics has labs at its home base in North Carolina as well as Atlanta but they claim to provide testing services to all 50 states. In the announcement it is indicated that the processing of the Microba kits will be done in North Carolina only.I remember seeing that in 2019 they had sold about 7,000 of their kits and more recently that number was up around 20,000. In the Hidden Gems presentation, from 9 April - see below, Luke Reid (at about the 13:30 mark) said that the company is paid by its distributors about $90 per test at a 95% profit margin. So say with these new arrangements they can sell 10,000 kits per year their revenue per year would be about $900,000 and their gross profit would be around $850,000. At 15,000 kits a year the figures would be $1.35m and just under $1.3m. In itself that would not be enough to keep the lights on but it's better than a slap in the face. I have not seen anywhere where they give sales projections so maybe they expect heaps more than that.

As an aside, LR said they hoped to have both distributor deals by EOFY and they did, but only just. In my experience very few listed companies deliver on what they promise so a huge thumbs up from me on that score.

Cannot get the link to work properly - google "Hidden Gems Microba" - the presentation is from 9 April 2022. If you have any interest in this company that presentation is solid imo.