[Click eStock] "Bioneer Expects Best Performance Since Inception Due to COVID-19"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 4th that Bioneer is expected to achieve its best performance since its establishment this year due to the novel coronavirus infection (COVID-19). No investment opinion or target price was provided.

Bioneer is the first domestic bio-venture company established in 1992. It operates in gene business, molecular diagnostics business, microbiome business, and new drug development business. It has developed nucleic acid extraction equipment, extraction reagents, PCR (gene amplification) equipment, and diagnostic kits using its own technology. Recently, since the outbreak of COVID-19, it has been exporting equipment and kits to 60 countries worldwide.

Clinical Researcher Im Linguk of KB Securities stated, "Due to the increased supply of COVID-19 related diagnostic equipment and reagents, a strong performance turnaround and return to profitability are expected this year," adding, "The confirmed supply volume for July alone is about 100 units, and it is estimated that about 300 units of equipment were supplied in the first half of the year." He explained, "The volume for the second pandemic preparedness in each country is steadily increasing, and through the expansion of the second plant, an increase in the supply of nucleic acid extraction reagents is expected."

He evaluated, "Compared to diagnostic kits, nucleic acid extraction reagents are currently in a supply-demand imbalance," and "Order volumes are steadily increasing, and a significant increase in supply is expected after September."

KB Securities emphasized the need to focus on the growth of its subsidiaries. He stressed, "Attention is being paid to the expanded contribution of subsidiaries' performance, with the continued popularity of diet probiotics," and "After selecting actress Kim Heesun as the advertising model, high growth rates are expected through diversification of sales channels such as home shopping. There is potential for increased market interest depending on whether clinical trials for idiopathic pulmonary fibrosis treatment enter full-scale stages within the year and the progress of COVID-19 treatment development."