On the 7th, Applied BioCode (ABC), a trailblazer in digital bio-barcode technology, released its 2023 financial report following approval by the board of directors. The company reported consolidated revenue of 395 million yuan, maintaining parity with the 2022 figure of 390 million yuan. Notably, the optimization of its product portfolio led to a substantial increase in sales of high-margin consumables such as Digital Bio-Barcodes (BMB) and In Vitro Diagnostic (IVD) reagents, exceeding 92 million yuan. This surge supplanted the previous main sales driver, the BioCode 2500 optical analyzer. With an annual gross margin reaching 68%, the company also managed to reduce losses by 21 million yuan compared to the previous year.
ABC attributed its optimistic outlook for the current year to the maturation of BMB licensed customers' commercialization efforts, coupled with the continued expansion of its IVD customer base. Notable successes include the growing demand for gastrointestinal and respiratory multiplex testing kits (GPP and RPP), along with the recent interest in multiplex fungal testing (Fungal RUO). This interest has extended to renowned institutions like the Johns Hopkins University Hospital, which completed the installation of MDx3000 in January, signaling a promising start for validating fungal testing reagents.
Leveraging its MDx3000 automated molecular diagnostic system, ABC has expanded its testing capabilities to encompass up to 65 targets. This advancement has fueled the development of new products, including multiplex testing kits for sexually transmitted infections combined with antimicrobial resistance (STI+AMR) and urinary tract infections combined with antimicrobial resistance (UTI+AMR). The company aims to increase its infectious disease testing targets to 100 within three years, solidifying its leadership in multiplex molecular testing.
In a groundbreaking move, ABC plans to initiate clinical trials for its sexually transmitted infection combined with antimicrobial resistance multiplex testing kits this year. These kits, which utilize the selectable and FDA-approved MDx3000 platform, will be the first in the industry to combine antimicrobial resistance genes for synchronous testing. This development addresses the rising challenge of bacterial antimicrobial resistance, offering patients tailored medication solutions for effective treatment. Furthermore, the company has received requests from major North American laboratories to develop multiple antimicrobial resistance testing kits, highlighting the vast market potential in this field.
While ABC continues its focus on infectious disease diagnosis, it also allocates resources to develop liquid biopsy products. Early successes with tests based on BMB and MDx3000 platforms have paved the way for further investment in clinical sample testing categorized by tumor type and gene type.
Despite its financial successes, ABC remains vigilant about securing operational funds for ongoing clinical trials and product development. While maintaining a cash reserve of 600 million New Taiwan dollars as of the end of 2023, the company's board of directors approved a cash increase to ensure the timely completion of clinical trials and evidence collection. Further assessments of market conditions and funding requirements will precede any regulatory applications.
