Cue Health is a health technology company that develops at-home and point-of-care molecular diagnostic systems. The company's core offering is the Cue Health Monitoring System, which consists of a reusable reader, single-use test cartridges, and collection wands. This platform performs PCR-class molecular tests and communicates results to a mobile app in approximately 20 minutes. Cue operates a razor-and-blade business model where it seeks to grow its installed base of readers to generate recurring revenue from high-volume cartridge sales. While the company currently offers tests for COVID-19 and mpox, its growth strategy focuses on expanding its diagnostic menu to include flu, RSV, and sexual health tests. To complement its hardware, Cue provides a digital care platform that includes telehealth services, mail-in lab testing, and pharmacy delivery. The company sells to enterprise clients, healthcare providers, and the public sector, while also offering products directly to consumers. Cue manufactures its cartridges in-house and distributes them through major partners like Cardinal Health and McKesson. The company argues that securing additional FDA clearances for pipeline tests will drive higher reader utilization and improve gross margins by spreading fixed manufacturing costs across greater production volumes.
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