Cue Health is applying for listing. The company currently has an authorized Covid-19 test for its portable test platform, which can send the results to the user’s smartphone. Image source: Cue Health
Cue Health is a company that develops portable test systems and is preparing to go public. The San Diego-based company has filed IPO documents with the U.S. Securities and Exchange Commission, but has yet to price its shares.
Currently, Cue has only one product: rapid molecular Covid-19 testing. After obtaining an emergency use authorization (EUA) for the test, the company started to realize revenue for the first time last year. It includes ink cartridges that can be inserted into the reader device and send the results to the user’s smartphone.March, it Obtained authorization to provide the test at home And over-the-counter drugs.
it is also Won a $481 million contract 6 million test kits and 30,000 readers were provided from the Ministry of Defense. The initial deadline for the contract was March, but it was later extended to October. In order to fulfill the contract, Cue needs to increase production to 100,000 Covid-19 tests per day by October 12. According to its prospectus. By the end of August, its output was slightly less than half of it.
So far, DoD contracts constitute most of Cue’s business. The documents show that in the first half of 2021, the company’s revenue was US$201.9 million, of which 83% came from public sector entities.
But this is still much more than last year, and last year’s full-year revenue was slightly more than $15 million.
The company also reported that net income in the first half of 2021 was US$32.8 million, while its net loss in 2020 was US$47.4 million. It currently has $77.6 million in debt.
Since all of Cue’s current revenue comes from its Covid-19 testing, the company’s next important step will be to obtain FDA 510(k) clearance. According to the document, to do this, it needs to conduct more research on recruitment and more Covid-19 positive cases.
Cue has five other tests in the later development. Before the pandemic, it had been developing a home flu test and launched a clinical trial in early 2020. But after recruitment was hindered by Covid-19, it stopped the study.
Cue said it plans to resume the study later this year, with the goal of completing it next spring. It also plans to seek EUA for joint A/B influenza and Covid-19 testing.
Some other tests in late development include RSV, fertility, pregnancy, and inflammation, although Cue has not yet started testing these.
