Pfizer Vaccine Shakes Seegene... Earnings Remain 'Steadfast'

Q3 Revenue and Operating Profit Reach Quarterly Record Highs... Increased Demand for COVID-19 Products in Europe

On the 10th, citizens waiting to be tested at the screening clinic set up at the National Medical Center in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kum Bo-ryeong] Despite the news of Pfizer's development of a novel coronavirus (COVID-19) vaccine, the leading diagnostic kit company Seegene is expected to maintain strong performance for the time being.

According to Seegene on the 12th, the consolidated sales for the third quarter reached 326.9 billion KRW, and operating profit was 209.9 billion KRW, marking the highest quarterly performance ever. These figures represent increases of 941.1% and 2967.6%, respectively, compared to the same period last year. Net profit was 152.5 billion KRW, growing approximately 25 times year-over-year.

It is analyzed that the strong performance was due to increased demand for COVID-19 related products in the European region. Compared to the second quarter, when the COVID-19 pandemic was at its peak, sales increased by about 20%.

The securities industry expects Seegene's performance to remain strong in the fourth quarter as well, due to concerns about a global second pandemic wave and the effects of new products. Shinhan Financial Investment estimates Seegene's consolidated sales for the fourth quarter at 359.2 billion KRW and operating profit at 230.4 billion KRW. Considering the cumulative third-quarter results of 683.5 billion KRW in sales and 418.6 billion KRW in operating profit, achieving annual sales of 1 trillion KRW is possible. Sun Min-jung, a researcher at Hana Financial Investment, said, "A second wave of resurgence has started in Europe and the United States. In the U.S., 200,000 new cases are occurring daily, and major cities in Europe have entered lockdown."

The stock price recently showed volatility following the COVID-19 vaccine development news. On the 9th (local time), U.S. pharmaceutical company Pfizer announced that the interim results of the phase 3 clinical trial of the COVID-19 vaccine jointly developed with German BioNTech showed an efficacy rate exceeding 90%. On the 10th and 11th, Seegene's stock price plunged 8.9% and 7.9%, respectively, compared to the previous trading day.

Individual investors have started betting on a stock price increase. According to the Korea Exchange, individual investors net purchased Seegene shares worth 86.1 billion KRW on the 10th and 11th. As of 9:55 a.m. on the day, the stock price rose 3.38% (7,800 KRW) from the previous trading day to 238,600 KRW.

Yoon Chang-min, a researcher at Shinhan Financial Investment, explained, "Practical vaccine development is likely to be completed after the first half of next year, but due to the impact of the global second pandemic wave, the shortage of diagnostic kits continues. Seegene differentiates itself by maintaining steady performance growth, unlike other companies with high volatility, thanks to its competitiveness in technology, distribution channels, and production capacity compared to other firms."

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