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Research: Healthcare
Clyra Medical, BioLargo’s partially owned (36%) subsidiary, recently announced that it registered with the FDA and launched Clyraguard, a disinfectant marketed for the treatment of non-critical surfaces such as personal protective equipment (PPE) that is non-irritating to skin. Concurrent with this BioLargo announced the results of two studies that showed Clyraguard and the company’s environmental product CupriDyne could both fully inactivate COVID-19.
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BioLargo |
Clyra launches Clyraguard
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26 May 2020 |
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BioLargo is a research client of Edison Investment Research Limited |
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Clyra Medical, BioLargo’s partially owned (36%) subsidiary, recently announced that it registered with the FDA and launched Clyraguard, a disinfectant marketed for the treatment of non-critical surfaces such as personal protective equipment (PPE) that is non-irritating to skin. Concurrent with this BioLargo announced the results of two studies that showed Clyraguard and the company’s environmental product CupriDyne could both fully inactivate COVID-19.
A disinfectant for PPE
Clyraguard leverages iodine (similarly to the Clyra wound irrigation solution and BioLargo’s CurpiDyne products) to disinfect surfaces. The product is intended for use with non-critical surfaces, which qualifies it as a Class 1 device with the FDA (which it has been registered as). The product is being marketed for use on PPE, which could decrease the risk of infection when handling contaminated items and potentially increase their usable lifespan. The technology is well suited for this use as it is safe on skin and highly tolerable, and provides long lasting disinfection.
Studies report complete inactivation of COVID-19
BioLargo supported two in vitro studies performed at UTMB-Galveston National Lab demonstrating that the new Clyraguard product and its environmental product CupriDyne both can completely inactivate COVID-19. Results from the CupriDyne study are available as a pre-publication preprint, which shows A 1 log reduction in viral titer after 10 minutes and below the level of detection at 60 minutes post exposure. It also published press release announcing that the Clyraguard product was also tested at the lab and that it also achieved complete inactivation of the virus to below the level of detection, with a paper to be published later. CupriDyne will need additional regulatory clearance from the EPA to be marketed for this purpose, but Clyraguard is FDA registered and can be sold immediately.
COVID-19 affects ONM but total revenue up
Odor-No-More (ONM) had sales of $298,000 for Q120 (mostly derived from CupriDyne), down 6% from Q119 and 37% sequentially, which the company attributed to COVID-19. However, the company has increased revenue for BLEST, driving firmwide top-line growth of 21% compared to the same quarter last year. We expect the impact of COVID-19 on CupriDyne to continue at a minimum through Q220, but expect the product to return to consistent growth once the crisis passes. The company reported a net loss attributable to shareholders of $2.27m for the quarter, although this is driven by $1.61m in non-cash expenses.
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Source: BioLargo reports |
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Research: Consumer
Borussia Dortmund’s Q320 results were positive from a profit and cash flow perspective despite the impact of COVID-19 at the end of the period. The Bundesliga has led the way in recommencing games after the season was temporarily suspended, albeit games are to be played behind closed doors, which will lead to lost ticket revenue (among other revenues). Borussia Dortmund is well placed to qualify for the Champions League in the 2020/21 season if the current season can be completed. We downgrade our EBITDA forecast for FY20 by c 49%, to reflect lost revenue due to COVID-19 and lower net transfer income. The share price looks well supported by asset valuations.