TUCSON, Ariz. - Accelerate Diagnostics, Inc. (NASDAQ: NASDAQ:AXDX) has announced the successful completion of its WAVE pre-clinical trial, marking a significant milestone in the development of its rapid antimicrobial susceptibility testing system. The WAVE system aims to deliver accurate results within 4.5 hours from positive blood culture bottles and bacterial isolated colonies, potentially improving patient outcomes and reducing healthcare costs associated with sepsis.
The trial compared 1,570 WAVE results against the reference method, Broth Microdilution, with an equal number of prospective patient samples and site-selected challenge samples. The system demonstrated approximately 95% Essential Agreement and Categorical Agreement across various antibiotic classes, indicating strong performance and concordance between sample types.
Jack Phillips, President and CEO of Accelerate Diagnostics, expressed confidence in the product design and system capabilities, paving the way for clinical trials and eventual commercialization. The WAVE system's rapid testing could be instrumental in addressing the global challenge of antibiotic resistance and sepsis, which accounts for an estimated 11 million deaths annually, with a significant portion linked to bacterial antimicrobial resistance.
In other recent news, Accelerate Diagnostics Incorporated has disclosed its Q1 2024 results, showcasing a minor uptick in net sales to $2.9 million, primarily driven by consumable sales. Despite this, the company noted a reduction in gross margin to 25%, a drop from the previous year's 36%, due to product mix changes.
The firm also reported a decrease in selling, general, and administrative expenses to $5.7 million, along with a reduction in research and development expenses to $5.2 million. The net loss for the quarter stood at $14.2 million, with a loss per share of $0.74.
InvestingPro Insights
As Accelerate Diagnostics, Inc. (NASDAQ: AXDX) heralds the success of its WAVE pre-clinical trial, the company's financial metrics and market performance provide additional context for investors. According to InvestingPro data, Accelerate Diagnostics currently holds a market capitalization of 33.53 million USD, reflecting its standing in the market. Despite the promising trial results, the company has not been profitable over the last twelve months, and analysts do not expect it to be profitable this year, as indicated by an InvestingPro Tip.
The company's revenue for the last twelve months as of Q1 2023 stands at 12.17 million USD, with a gross profit margin of 18.59%. However, the company's operating income margin was -395.48%, signaling considerable losses relative to its revenue. This performance mirrors the concerns highlighted by an InvestingPro Tip, which points out the company's rapid cash burn and a valuation that implies a poor free cash flow yield.
On a more positive note, Accelerate Diagnostics has experienced a strong return over the last month and three months, with price total returns of 15.38% and 49.17% respectively. This uptick could suggest investor confidence following the announcement of the WAVE trial's success. Yet, it is important to recognize that the stock price has fallen significantly over the last year and five years, underscoring the volatility and challenges the company has faced.
For investors seeking a deeper dive into Accelerate Diagnostics' financial health and market performance, InvestingPro offers additional tips. There are currently 9 more InvestingPro Tips available for AXDX, which can be accessed at https://www.investing.com/pro/AXDX, providing a comprehensive analysis that can support informed investment decisions.
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