Co-Diagnostics forms joint venture to manufacture PCR platform in Saudi Arabia

SALT LAKE CITY - Co-Diagnostics, Inc. (NASDAQ:CODX), currently trading at $0.35 with a market capitalization of $16.9 million, announced Monday it has entered into a definitive agreement with Arabian Eagle Manufacturing to form a joint venture called CoMira Diagnostics that will manufacture and distribute Co-Dx technologies across Saudi Arabia and 18 other Middle Eastern and North African countries. According to InvestingPro data, the company’s stock has seen a significant decline of about 74% over the past year.

The new Saudi-based joint venture will focus on the company’s upcoming Co-Dx PCR point-of-care platform and other molecular diagnostic products. According to the agreement, Arabian Eagle will handle local operations, manufacturing facility setup, and regulatory clearance responsibilities, while Co-Diagnostics will provide an exclusive license to use and commercialize its intellectual property. InvestingPro analysis shows the company maintains a strong current ratio of 4.12, indicating solid short-term liquidity, though it’s currently experiencing rapid cash burn.

"We are pleased to announce this agreement to establish the relationship with Arabian Eagle, our valued partners in the Middle East, as we expand the reach of our healthcare innovations into a region with a large and growing market for medical devices and point-of-care diagnostics," said Dwight Egan, CEO of Co-Diagnostics.

The joint venture aligns with Saudi Vision 2030 objectives supporting technology localization, industrial diversification, and healthcare innovation. Both companies believe that securing regulatory clearance from the Saudi Food & Drug Administration will facilitate entry into other countries in the region.

Ihssan Rjoob, CEO of Arabian Eagle, stated that the collaboration "supports the goals of Saudi Arabia’s Vision 2030 by advancing health security, driving technology localization, and promoting sustainable industrial growth."

The principals of Arabian Eagle previously managed the primary distributor in the Middle East for Co-Diagnostics’ Logix Smart tests, making Saudi Arabia one of the company’s largest international markets.

The arrangement is similar to Co-Diagnostics’ existing joint venture in India, CoSara Diagnostics Pvt Ltd. Infectious disease tests currently being prepared for clinical evaluations include tuberculosis, HPV, and respiratory illnesses.

The Co-Dx PCR platform is still subject to regulatory review and is not currently available for sale, according to the press release statement. With revenue declining by 89% in the last twelve months and analysts forecasting continued sales decline, this expansion could be crucial for the company’s future growth. For deeper insights into Co-Diagnostics’ financial health and growth prospects, including 11 additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Co-Diagnostics, Inc. reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of -$0.23, which exceeded analysts’ expectations of -$0.66. The company’s revenue for the quarter was $200,000, aligning with forecasts. Co-Diagnostics also completed a registered direct offering, raising approximately $3.8 million through the sale of 9,619,000 shares at $0.40 per share. The funds are intended for working capital and general corporate purposes. Additionally, Co-Diagnostics signed a Memorandum of Understanding with a regional company in Saudi Arabia, aiming to explore a joint venture for developing and selling its intellectual property in the Middle East and North Africa. H.C. Wainwright reiterated its Neutral rating on Co-Diagnostics following the financial results. The company’s net loss for the quarter was $7.7 million, which was less than the estimated loss of $8.3 million. These developments highlight Co-Diagnostics’ ongoing financial and strategic activities.

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