Applied DNA secures U.S. supply chain for key materials

Published 21/04/2025, 14:14
Applied DNA secures U.S. supply chain for key materials

STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), a biotechnology company specializing in PCR-based DNA technologies with a current market capitalization of $5.27 million, announced today that its subsidiary, LineaRx, has achieved a significant milestone in securing a U.S.-based supply chain for essential input materials for its LineaDNA™ and LineaIVT™ platforms. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, and its current ratio of 4.72 indicates solid short-term financial stability. This development aligns with the BIOSECURE Act of 2024 and increasing customer preference for domestic supply chains.

LineaRx has transitioned to sourcing over 75% of its manufacturing cost of goods, including DNA template materials and manufacturing enzymes, from U.S. suppliers. This shift is expected to bolster the company’s position in the genetic medicines market, particularly for mRNA/DNA products and cell and gene therapies. The company’s strategic moves come at a crucial time, as InvestingPro analysis shows revenue of $3.74 million in the last twelve months, with analysts anticipating significant revenue growth in the coming fiscal year. For deeper insights into APDN’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The move comes amid a broader industry trend towards reshoring biopharmaceutical manufacturing in the United States, driven by concerns over tariffs and supply chain stability. LineaRx’s President, Clay D. Shorrock, stated that the company’s U.S.-based production capabilities for DNA template materials and manufacturing enzymes will enhance its reliability as a manufacturing partner.

Applied DNA’s LineaDNA platform is known for its cell-free DNA production, capable of generating high-fidelity DNA constructs at scale. The platform’s recent advancements include the LineaIVT platform, which integrates DNA IVT template manufacturing with a proprietary RNA polymerase, LineaRNAP™, to produce mRNA therapeutics more efficiently.

In June 2024, LineaRx completed the manufacturing scale-up of its proprietary RNA polymerase with a U.S. manufacturer. This scale-up is part of the company’s strategy to support the domestic development and manufacturing of genetic medicines.

Applied DNA Sciences operates in two main business markets: the enzymatic production of synthetic DNA for nucleic acid-based therapeutics and the detection of DNA and RNA for molecular diagnostics and genetic testing services.

The company’s forward-looking statements indicate plans and projections for the future, which are subject to risks and uncertainties. These include the company’s history of net losses, limited financial resources, and the unpredictable impacts of tariffs and geopolitical agendas. InvestingPro data reveals that APDN is currently trading near its 52-week low, with significant volatility in its stock price. InvestingPro subscribers have access to 15+ additional ProTips and extensive financial metrics that can help evaluate the company’s investment potential and risks.

The information in this article is based on a press release statement from Applied DNA Sciences, Inc.

In other recent news, Applied DNA Sciences, Inc. has regained compliance with Nasdaq’s minimum bid price requirement. The company confirmed that its common stock maintained a closing bid price of at least $1.00 for 16 consecutive business days, resolving a previous non-compliance issue. Additionally, Applied DNA has scheduled its 2025 Annual Meeting of Stockholders for May 22, to be held virtually. The company is also making strategic adjustments to its pharmacogenomics testing service, focusing on subpanels targeting specific genetic variants, such as those affecting the DPYD gene, which is important for metabolizing certain chemotherapy drugs. Furthermore, Applied DNA has submitted a validation package for its Linea™ Avian Influenza H5 Dx assay to the New York State Department of Health, aiming to detect the H5 bird flu virus. The Centers for Disease Control and Prevention has emphasized the importance of such testing due to the virus’s spread among livestock and potential human cases. Dr. James A. Hayward, CEO of Applied DNA, highlighted the company’s readiness to provide this testing service, pending regulatory approval. These developments reflect Applied DNA’s ongoing efforts to enhance its service offerings and maintain regulatory compliance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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