In 2021 the number of trials that incorporated decentralized parts increased by 50% to over 1,000 and is expected to increase by a further 28% this year. In the first nine months of this year, decentralized trials made up 62% of all sales for Cogstate, with a record total sales secured of US$73.6 million.
Cogstate has transitioned to an almost 100% virtual work environment that has allowed it to geographically expand its work force. In the US, 74% are based in Connecticut with the remaining 26% of staff living in 13 different states.
O'Connor said that the pandemic has opened the industry to new ways of operating, with Cogstate being quick to respond to new opportunities, and believes the industry will not return to old practices.
Cogstate's revenue forecast for this year is US$44 - US$47 million (up from US$32 million) with an EBIT of between US$8.8 - US$11.3 million (up from US$3.4 million). With a relatively fixed cost base, EBIT margins and cashflow are expected to accelerate as revenue increases.
Bioshares recommendation: Buy
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