[Click eStock] "LabGenomics Accelerates US Diagnostic Market Penetration with LDT Strategy"

Daishin Securities analyzed on the 29th that Labgenomics' LDT strategy will accelerate its entry into the U.S. diagnostic market. No investment opinion or target price was provided.

Founded in 2002, Labgenomics operates NGS-based gene analysis services and manufactures PCR and immunochemical diagnostic kits. Leveraging over 20 years of experience and expertise, it achieved its highest performance during the COVID-19 pandemic through PCR kit development and diagnostic testing. In July 2023, it acquired QDx, and recently added IMD through another acquisition, securing a total of four CLIA labs in the U.S.

Songhyeop Han, a researcher at Daishin Securities, explained, "The U.S. entry strategy centers on acquiring CLIA labs and utilizing the LDT method. By acquiring CLIA labs such as QDx and IMD, Labgenomics provides LDT (Lab Developed Test) services, enabling rapid market launch of in-house developed tests without FDA approval."

He added, "By acquiring QDx in the East and IMD in the West, they have established a nationwide sales network across the U.S. along with connections to major hospitals and insurance companies. This is expected to generate regional synergies, diversify the testing portfolio, and expand contracts with large hospitals and insurers."

Han emphasized that Labgenomics aims to return to profitability next year and recover past sales thereafter. He stated, "The company holds 100 billion KRW in cash and maintains a low debt ratio, establishing a stable financial structure. Based on this, there is capacity for further M&A to expand its U.S. business." He added, "From next year, the effect of LDT conversion will fully materialize and one-time costs will decrease, leading to a return to profitability. The goal is to recover sales levels seen during the COVID-19 period by 2026."

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