American Bio Medica Corp (ABMC)

[meluto]

Growth Strategy from the Prospectus

Bold below is by me.

https://ih.advfn.com/stock-market/USOTC/american-bio-medica-qb-ABMC/stock-news/84079053/prospectus-filed-pursuant-to-rule-424b3-424b3

Growth Strategy

When testing for Covid-19, the right test depends on the goal, such as confirming an active Covid-19 infection; identifying asymptomatic or pre-symptomatic individuals who might be shedding virus, or determining whether someone previously had Covid-19. There is not a lone testing approach that is going to meet every need. For that reason, our near-term growth strategy is focused on further penetration of markets with the Covid-19 rapid antibody, the RT PCR test for Covid-19 and the Rapid Covid-19 Antigen test we are distributing.

Rapid diagnostics are key to epidemic management and the demand remains staggering. As the number of people suffering from the viral infection increases, the demand for rapid testing, which allows detecting the virus quickly, grows. More Covid-19 tests than ever are being used as cases and hospitalizations surge nationwide. People are seeking tests after developing symptoms, being exposed to others sickened by the virus, or traveling over the holiday. The adoption of a population-wide testing approach is one of the trends influencing the demand for covid-19 diagnostics kits. The shift from symptomatic testing to mass testing in developed countries is another major factor affecting the market.

We also believe that the demand for Covid-19 rapid antibody tests will increase over time as the need for data increases; that is, when testing is used as a means to determine the full impact/extent of the virus, its mortality rate, the length of time antibodies remain in the body and the impact of the antibodies on the virus, as well as a means to monitor the efficacy of vaccines as they are released. We believe that the antibody status of individuals will be monitored very closely and rapid antibody tests are appropriate for this application.

Beginning in mid-2019, we can sell oral fluid drugs tests in the employment and insurance markets under a limited exemption set forth by the FDA. Prior to this point, we could only sell our oral fluid drug tests in the forensic market in the United States and to markets outside the United States. We are hopeful that gaining access to this market again will enable us to see revenue growth for our oral fluid drug tests in the future.

We plan to invest in our selling and marketing division by increasing the size of our sales team to further penetrate the Covid-19 testing market and drug test markets. We intend to increase our direct marketing efforts related to the product we offer.

In 2019, we gained two new contract customers, one with a malaria diagnostic test and the other private labeling a special configuration of our Rapid TOX product. We are looking for avenues to further capitalize on our US manufacturing operations, especially during this time of high demand for diagnostic products for Covid-19 and US-based manufacturing.

In the announcement of the LPC agreement it says:

The Company intends to use proceeds from sales under the purchase agreement for working capital and to support growth initiatives. Specific growth initiative may include, but not be limited to, strengthening the Company's sales and marketing division, increasing its contract manufacturing activities and introducing its oral fluid drug testing platform to the market. The Company may also pay down debt to decrease interest costs.