[Click eStock] "Bioneer, Positive Momentum for COVID-19 Diagnostic Products"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 22nd that Bioneer is expected to have performance momentum due to COVID-19 related products. No investment opinion or target price was provided.

Bioneer is the first domestic bio venture company in Korea, engaged in gene business, molecular diagnostics business, microbiome business, and new drug development business. It supplies total diagnostic solutions ranging from nucleic acid extraction related to molecular diagnostics such as COVID-19 diagnosis to diagnostic kits and PCR (real-time gene amplification) equipment.

Researcher Lim Sang-guk of KB Securities said, "The momentum related to the COVID-19 virus is positive. We are developing a rapid molecular diagnostic device (PCR method) that can determine COVID-19 infection within 30 minutes and a large-capacity fully automated molecular diagnostic system that can diagnose 94 samples within 90 minutes," adding, "We aim to obtain sales approval from Korea and European CE in 2021 and the US FDA in 2022. Compared to existing diagnostic equipment, it is expected to significantly reduce time and processes, optimizing it as an on-site diagnostic device."

Growth of the health functional food subsidiary is also anticipated. He explained, "We focus on the expanded performance contribution of the subsidiary ‘Acebiome’. Sales of diet probiotics recorded 15.8 billion KRW in 2019, 49.4 billion KRW in 2020, and 17.3 billion KRW in the first quarter of 2021," adding, "Diversification of home shopping sales channels and increased interest in health functional foods continue to drive high growth rates of probiotic diet products."

Additionally, it is expected to emerge as a gene-based biopharmaceutical company. Researcher Lim emphasized, "Attention should be paid to the growth potential of next-generation gene-based new drug platforms. The subsidiary Sernagen Therapeutics possesses 14 pipelines (including candidates) with RNA synthesis and delivery technology and is developing a treatment for pulmonary fibrosis (preclinical) based on SAMiRNA™," adding, "They are developing candidate substances that can suppress proliferation of COVID-19 variant viruses and lung inflammation, so future non-clinical and clinical trial results are noteworthy."