[Asia Economy Reporter Hyungsoo Park] EDGC has been soaring for two consecutive trading days. The news that it will become the world's number one producer of polymerase reagents, a key raw material for COVID-19 diagnostic kits, appears to be influencing the stock price.
As of 10:11 a.m. on the 13th, EDGC is trading at 16,850 KRW, up 12.33% compared to the previous trading day. After hitting the price limit on the 10th, it has maintained a sharp rise for two consecutive trading days.
Economic media reported that Solgent is expected to be capable of producing 120 million tests per month starting around September and will have the largest production capacity worldwide. Solgent's second factory, which held a groundbreaking ceremony last month, will begin full-scale operation in September. With the expansion of the second factory, it will be possible to mass-produce polymerase, the raw material for molecular diagnostic kits needed worldwide, as well as COVID-19 diagnostic kits. The company expects to primarily assist domestic companies that used to import key raw materials for diagnostic kits from Germany and China by supplying domestically produced reagents.
Yoo Jae-hyung, co-CEO of Solgent, explained, "Solgent has received global quality recognition in many countries, including the U.S. Food and Drug Administration (FDA) Emergency Use Authorization and European CE certification," adding, "Among the six companies in Korea that have received emergency use authorization for COVID-19 diagnostic kits, we are the only one producing the key raw materials in-house."
Yoo also said, "We are pursuing long-term contracts for up to 50 million tests over six months," and added, "We are also prepared to actively cooperate with domestic diagnostic kit companies facing difficulties due to the import price of key raw materials such as polymerase reagents rising more than sixfold before and after the COVID-19 pandemic, by supplying reagents upon their request."
EDGC will become the largest shareholder of Solgent through a merger with EDGC Healthcare.
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