The core business of biotech Fulgent Genetics is rapidly increasing sales

Last year, the developer and supplier of genetic tests, Fulgent Genetics Inc. (FLGT), increased sales mainly due to COVID tests. The company conducted almost 11 million paid trials between October 2020 and September 2021. However, the developer continues to improve its core business of genetic testing, which creates the basis for growth in the pandemic. 

Year, the shares of Fulgent Genetics have remained volatile due to the waves of coronavirus: investors expected either an increase or a decrease in the sale of COVID tests. Likely, the pandemic stages will still put pressure on the quotes of Fulgent Genetics. Still, in recent quarters the company has strengthened partnerships that will allow it to develop its core business. 

In May 2021, Fulgent Genetics invested $19 million in a joint venture with FF Gene Biotech. After that, the company announced a partnership with Helio Health, a manufacturer of diagnostics for early detection of oncological diseases based on blood. In November 2021, the companies published positive test data to detect liver cancer. 

This test is currently undergoing clinical trials in the US and China. Finally, Fulgent Genetics acquired CSI Laboratories, which helped it enter the market for testing tumors and cancer cells after a patient. The advantage of CSI Laboratories lies in the existing relationships with insurers, and Fulgent Genetics expects to use these relationships to promote its tests. The revenue of the central segment in 2020 amounted to $36.5 million, and in 2021 it is expected to bring about $ 115 million. The continued growth of Fulgent Genetics’ core business should inspire confidence in investors that the company will function normally even after the end of the pandemic.