SomaGen Reports $12.55 Million in H1 Revenue... "Operating Loss Improved by 58% YoY"

Somagen, a US-based multi-omics specialized analysis company, succeeded in reducing its operating loss for the first half of this year by more than half compared to the same period last year.

According to the disclosure submitted by Somagen on the 14th, the cumulative sales for the first half of this year amounted to approximately $12.55 million (about 16.3 billion KRW), down about 19% from the same period last year. However, through efficient management, the half-year operating loss was reduced by about 58% compared to the previous year, to approximately $750,000 (about 970 million KRW).

Additionally, Somagen's current assets for the first half of this year stood at $18.21 million (about 24 billion KRW), and current liabilities were $4.13 million (about 5.4 billion KRW), with current assets being more than four times the current liabilities. Moreover, cash and cash equivalents and short-term financial instruments available for immediate operation exceeded 14 billion KRW, establishing Somagen as a financially healthy company within the bio industry, which has recently faced difficulties due to rights offerings or convertible bond repayments.

A Somagen representative stated, “Compared to other listed bio companies, Somagen is a company capable of sufficient growth without sudden capital raising through convertible bond issuance or rights offerings. Although sales slightly decreased compared to the same period last year and some funds were invested in building new platforms in the first half of this year, we achieved significant improvement in operating losses through efficient capital management and securing new sales.”

Somagen has secured a strong customer pipeline as well as a healthy financial structure. In July, Somagen succeeded in extending a genome sequencing service supply contract worth approximately $6.48 million (about 8.5 billion KRW) for one year starting from the second half of this year with Moderna, a global vaccine development company based in the US, raising expectations for sales recovery in the second half.

Moderna has maintained a close partnership with Somagen for about 10 years since 2014, increasing order volumes, and in the recent extension contract, satisfied with Somagen’s analysis speed and accuracy, reportedly doubled the supply volume compared to last year.

Furthermore, Somagen is focusing on expanding various analysis platforms to meet global demand. Recently, it introduced the single-cell analysis platform ‘Xenium,’ capable of precise analysis of intractable diseases such as cancer, and the long-read sequencing platform ‘Revio,’ which precisely analyzes long fragments of single DNA molecules to aid in overcoming rare and intractable diseases. This has fully prepared Somagen to sensitively respond to global demand in the genome and cancer diagnostic analysis markets and to attract new customers.

In addition, Somagen has consistently participated in the Global Parkinson’s Genetics Program (GP2), a global Parkinson’s disease genome analysis project involving 150,000 participants led by the US National Institutes of Health (NIH). Recently, order volumes from this project have been continuously expanding. Moreover, Somagen has attracted new clients such as AstraZeneca, GSK, and Sanofi, verifying its capabilities and recognition in the global genome analysis market.

Hong Soo, CEO of Somagen, said, “This year, Somagen continues to maintain a stable financial structure through efficient management. Recently, as an essential step toward growing into a global multi-omics analysis institution, we have completed the establishment of various new analysis platforms such as single-cell sequencing and long-read sequencing. As the global precision medicine market expands, we expect increased new demand through various analysis platforms within the US and the restart of large-scale genome analysis projects led by the NIH and others from the second half of this year. Accordingly, we anticipate Somagen’s sales to increase from the second half of this year.”

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