Somagen Soars on Debut Trading Day... Expectations to Lead DTC Genetic Testing Market

[Asia Economy Reporter Hyungsoo Park] Somagen, a subsidiary of Macrogen, is soaring on its first day of listing on the KOSDAQ.

At 9:40 a.m. on the 13th, Somagen was trading at 14,550 KRW, up 24.89% from the opening price.

On this day, the opening price was set at 11,650 KRW, 5.9% higher than the public offering price of 11,000 KRW.

Somagen is a genome analysis company established by Macrogen in 2004 in Rockville, Maryland, USA. It provides genome analysis service solutions such as Sanger sequencing (CES), next-generation sequencing (NGS), direct-to-consumer genetic testing (DTC), and microbiome analysis. Based on its experience participating in major U.S. government projects, it maintains a market share of around 10% in the NGS service market within the United States.

Somagen has commercialized two main personal genome analysis services. It analyzes genotypes to provide relative disease risk information or customized health information that enhances quality of life. It analyzes the composition of gut bacteria, which has been found to directly or indirectly affect diseases such as obesity, atopy, depression, and cancer, and monitors changes in gut health.

As the disease management paradigm shifts from treatment to prevention, the importance of genome analysis services provided by Somagen is increasing. Personalized medicine, which improves quality of life through early diagnosis, prevention, and treatment of diseases based on an individual's genome information, is developing.

Demand for direct-to-consumer genetic testing, where consumers directly request genetic testing services related to their health and disease risk without going through medical institutions such as hospitals, is increasing. In the U.S., DTC services are available in 35 states. The DTC market size is expected to grow from $824 million in 2018 to $6.365 billion in 2028, with an average annual growth rate of 22.7%. The U.S. accounts for 47% of the global DTC market.

Somagen has established facilities providing DTC services in Virginia, USA, and started services in October last year. It currently has laboratories and equipment capable of processing 150,000 samples annually.