Diagnostic Kit Stocks, Expectations Rise for Record Q3 Performance

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] Companies related to diagnostic kits are forecasting earnings surprises for the third quarter of this year. Due to the global resurgence of the novel coronavirus infection (COVID-19), record-breaking results surpassing those of the first and second quarters are expected.

According to customs clearance data compiled on the 3rd, the export value of diagnostic kits in August reached $181.89 million, an 828% increase compared to the previous year. This figure also represents a 33% increase compared to July.

Seon Minjeong, a researcher at Hana Financial Investment, analyzed, "The export value of diagnostic kits, which had nearly halved in July compared to the peak in April, appears to have started a turnaround," adding, "This upward trend is expected to continue."

Among diagnostic kit companies, Seegene, which has the largest market capitalization, is expected to report an earnings surprise in the third quarter. Mirae Asset Daewoo forecasted Seegene's third-quarter sales and operating profit to be 376.5 billion KRW and 165.8 billion KRW respectively, representing increases of 781% and 2323% year-over-year.

Kim Choonghyun, a researcher at Mirae Asset Daewoo, evaluated, "Given the current trend, it is highly likely that growth compared to the same period last year will continue until the first quarter of next year," and added, "The expansion of market share in Europe and South America, Seegene's main markets, due to COVID-19 is positive."

Other diagnostic kit companies are also expected to perform well.

SugenTech achieved an operating profit of 20.2 billion KRW in the second quarter, turning profitable compared to the same period last year. Jung Seungyun, a researcher at Korea Investment & Securities, stated, "SugenTech obtained Emergency Use Authorization from the U.S. Food and Drug Administration (FDA) for its antibody diagnostic kit 'SGTi-flex COVID-19 IgG,'" and predicted, "Going forward, companies that have secured overseas distributors or obtained FDA approval, and those with diverse product portfolios in diagnostic kits, will receive a premium." SugenTech's approval is the FDA's 14th antibody diagnostic kit approval and the second certification among domestic companies following Access Bio.

Previously, Access Bio, which also received FDA approval for its antibody diagnostic kit, succeeded in turning profitable with an operating profit of 1.3 billion KRW in the second quarter this year. Currently, Access Bio holds European certification for a total of three product groups: COVID-19 antigen diagnostic kits, antibody diagnostic kits, and molecular diagnostic kits.

LabGenomics achieved sales of 49.2 billion KRW and an operating profit of 31.2 billion KRW in the second quarter, and Bioneer also turned profitable with an operating profit of 32 billion KRW during the same period.

This content was produced with the assistance of AI translation services.