[Featured Stock] LabGenomics Secures Core Technology for Genetic Testing Reagents... Expected Beneficiary of Wuhan Pneumonia

[Asia Economy Reporter Yoo Hyun-seok] LabGenomics is showing strong performance. It appears that securities firms' analysis, which suggests that the company could benefit from the Wuhan pneumonia due to its possession of core technology for developing genetic testing reagents, has had an impact.

As of 9:40 AM on the 29th, LabGenomics was trading at 7,690 KRW, up 11.13% (770 KRW) compared to the previous trading day.

Researcher Koo Wan-sung from NH Investment & Securities stated, "Due to the current Wuhan pneumonia situation, it is expected that diagnostic companies will benefit first rather than vaccine or treatment developers," adding, "As with the past MERS and Zika virus incidents, the possibility of invoking the 'Emergency Use Authorization' is emerging. The 'Emergency Use Authorization' means temporary approval for the use of genetic testing reagents without formal authorization." He continued, "The industry expects that technically, kit production could be possible within four weeks."

Currently, among domestic companies holding diagnostic kit product approvals, those related to MERS diagnostic kits include Bioneer, LabGenomics, and Seegene. Companies related to Zika virus diagnostic kits include Bioneer, LabGenomics, Boditech Med, and Sugentech. Researcher Koo expects these companies to possess core technology for developing genetic testing reagents.

He emphasized, "I recommend focusing on Bioneer and LabGenomics as beneficiaries of this situation," and highlighted, "It is important to note the case of Bioneer, which developed diagnostic kits during the 2009 H1N1 flu outbreak, where sales increased by 13.4 billion KRW and operating profit rose by 9.6 billion KRW."