Anbio Biotechnology Pursues U.S. IPO For Its IVD Products Launch

Original from: Seeking Alpha

Anbio Biotechnology Is Preparing To Launch Its IVD Business

Anbio Biotechnology (NNNN) has filed to raise $8.8 million in an IPO of its Class A ordinary shares, according to an SEC F-1 registration statement.

NNNN provides in vitro diagnostics products for various application environments and various other diagnostics.

Given the numerous regulatory, market and expansion risks the company faces as it launches IVD products and its expensive valuation assumptions, my opinion on the IPO is hold (neutral).

What Does Anbio Do?

Frankfurt am Main, Germany-based Anbio Biotechnology was founded to focus on the in vitro diagnostics [IVD] market for over-the-counter, point-of-care and laboratory applications.

Management is headed by Chief Executive Officer Michael Lau, who has been with the firm since November 2021 and was previously Vice-President and Global Head of GMP Operations for Genscript Biotech Corp. (OTCPK:GNNSF).

During and after the COVID-19 pandemic, the company has generated significant revenue from its rapid test kits. That revenue is now dropping substantially.

All the company's IVD products are ready for commercialization, but the company still must register with the relevant authority for regulatory approvals in the European Union.

Management is also seeking approvals for its IVD products in the regions of the Asia Pacific, Americas, and Africa.

As of June 30, 2024, Anbio had booked fair market value investment of $18,009 from investors, including CVC Investment and Northwestern Investment.

The firm has collaborated with third-party laboratories to develop its products, so it has outsourced its R&D work.

All of its IVD products are CE-marked and can be commercialized in the EU, and management plans to expand the registration of its products for different device classes in the coming years.

In the six months ended June 30, 2024, 63% of the company's revenue came from the EU region and the firm has “significant” customer concentration risks.

Market Overview For Anbio

According to a 2024 market research report by Grand View Research, the worldwide in vitro diagnostics market was an estimated $80.7 billion in 2024 and is forecasted to reach $119 billion by 2030.

This represents a forecast CAGR of 6.75% from 2025 to 2030.

The primary reasons for this expected growth are a growing incidence of infectious and various chronic diseases, as well as the development of higher-throughput IVD systems for hospitals and laboratories.

Anbio’s Recent Financial Results

The firm’s recent financial performance is summarized as shown below:

· Highly variable topline revenue

· Sharply reduced gross profit but increased gross margin

· Fluctuating operating profit and cash flow from operations.

As of June 30, 2024, Anbio had $10.3 million in cash and $527,753 in total liabilities.

The company has generated free cash flow for the twelve months ended June 30, 2024, of negative ($634,089).

Source: Anbio Biotechnology Pursues U.S. IPO For Its IVD Products Launch