[Click eStock] "i-SENS, Quantum Jump Expected if Entering Continuous Glucose Monitoring Market"

[Asia Economy Reporter Yoo Hyun-seok] KTB Investment & Securities analyzed on the 20th that if i-SENS enters the continuous glucose monitoring market, a quantum jump in performance is expected. No investment opinion or target price was provided.

i-SENS is a specialized in vitro diagnostic device company established in 2000. It is the number one company in the domestic self-blood glucose monitoring market. Blood glucose meters are the main source of sales, and blood glucose meters and point-of-care testing (POCT) devices are sold under its own brand as well as OEM and ODM.

Last year's fourth-quarter sales amounted to 55.8 billion KRW, a 3.5% increase compared to the same period last year. However, operating profit during the same period was 5.6 billion KRW, a 14.3% decrease. Kim Jae-yoon, a researcher at KTB Investment & Securities, said, "Sales of blood glucose meters slightly decreased compared to the same period last year due to delays in sea shipment of export volumes in December, but this will be reflected in the first quarter of this year," adding, "On the other hand, POCT recorded 36% growth compared to the same period last year, maintaining high growth."

Researcher Kim Jae-yoon expects i-SENS's performance growth to accelerate going forward. He said, "The Chinese factory, which had been sluggish until the first half of 2020, successfully reversed to an increasing operation rate trend in the second half, and this year, 30% growth compared to the previous year is possible," and added, "The blood coagulation analyzer sales of the U.S. subsidiary Coagucense recorded 23 billion KRW last year, a 46% increase compared to the previous year."

Researcher Kim expects i-SENS's sales this year to reach 230 billion KRW, a 12.9% increase compared to the previous year. He anticipated increases in capacity expansion and POCT sales. However, due to clinical costs, operating profit is expected to decrease by 9.7% compared to the same period last year to 27.5 billion KRW. He said, "the expected clinical costs this year are around 5 billion KRW, and excluding these costs, i-SENS's operating profit is expected to increase by 6.7% compared to the same period last year to 32.5 billion KRW," he added.

He emphasized the need to watch the momentum of i-SENS's continuous glucose monitor launch. He said, "The continuous glucose monitor, which is the key momentum for i-SENS's stock price, is scheduled for research clinical trials from April to June, approval clinical trials in the second half of the year, and product launch in 2022," explaining, "Currently, the continuous glucose monitoring market is an oligopoly dominated by Dexcom, Abbott, and Medtronic. If i-SENS succeeds in launching its continuous glucose monitor, a quantum jump in the company's performance is expected due to entry into the 7 trillion KRW continuous glucose monitoring market."