PrecisionBio Signs 21 Billion KRW Supply Contract for Animal Clinical Chemistry Diagnostic Devices

[Asia Economy Reporter Hyunseok Yoo] Precision Bio, a company specializing in in vitro diagnostics, announced on the 15th that it has signed a long-term supply contract for animal clinical chemistry analyzers and cartridges with the Germany-based global company Scil Animal Care Company GmbH (hereinafter, Scil). The confirmed contract volume amounts to a total of 21 billion KRW over the next five years, which corresponds to 337.1% of the consolidated sales in 2019.

With this supply contract, Precision Bio aims to ▲commercialize its new clinical chemistry diagnostics business early, ▲secure a large client with a global network for stable market entry, and ▲accelerate entry into high-potential overseas markets, thereby quickly putting the new business on track while also expecting synergy with its immunodiagnostics business.

In fact, Scil is a leading company in the animal diagnostics market headquartered in Germany, operating 8 subsidiaries in Europe and Asia and selling animal diagnostic products in 28 countries worldwide. Since being acquired by the U.S. animal diagnostics company HESKA in April last year, it has been continuously expanding its global management.

Precision Bio stated, "Since last year, we have designated the clinical chemistry diagnostics business as the next-generation growth engine and started supplying analyzers from December last year in response to replacement demand." They added, "The manufacturing facility for producing 2 million cartridges annually is expected to be completed within the first half of this year, so early stabilization of the new business is anticipated."

Accordingly, Precision Bio plans to focus on stabilizing the production of analyzers and cartridges and securing additional contracts through this agreement, thereby fully launching its global clinical chemistry diagnostics market strategy by ensuring stable operation rates of the new manufacturing facilities.

Kim Hanshin, CEO of Precision Bio, said, "We are pleased to have smoothly prepared for the clinical chemistry business and signed a contract with a leading company in the animal diagnostics field." He emphasized, "We will quickly complete the construction of production facilities for early market supply and continuously prepare for entry into not only Europe but also North American markets such as the U.S. and Canada, as well as China and Asia, to firmly establish the clinical chemistry business."

Meanwhile, Precision Bio is currently accelerating its growth as a global POCT specialist company by adding clinical chemistry diagnostic products to its business portfolio following the sales of high-sensitivity fluorescent immunodiagnostic products in Europe and Asia.