Somagen Expands Supply of 'Genomic Analysis' to US Moderna: "Double Last Year"

[Asia Economy Reporter Hyunseok Yoo] Somagen, the first foreign company to be listed through the technology special listing system, announced on the 6th that it has signed an extension contract to supply genomic sequencing services for DNA and RNA with the US company Moderna for the first half of the year.

Since signing a contract to supply genomic sequencing services for DNA and RNA with Moderna in April 2014, Somagen has provided genomic sequencing services worth approximately 1 billion KRW annually. Recently, as Moderna's business has expanded with COVID-19 vaccine development, the existing order volume from Moderna to Somagen will be more than doubled in the first half of this year. The sales Somagen supplied to Moderna in the first half of 2021 amounted to 430,000 USD.

A company representative stated, "The supply volume of approximately 1.16 million USD (about 1.4 billion KRW) specified in the extension contract represents the minimum volume that Moderna will order from Somagen during the first half of this year," adding, "If Moderna's business continues to grow and the demand for genomic sequencing of DNA and RNA increases, the supply volume specified in this contract may be exceeded."

Somagen recorded cumulative sales of 17.65 million USD in the third quarter, achieving about 48% sales growth compared to the same period in 2020. This growth is due to increased sales in its core business of genomic sequencing services for DNA and RNA. As of the third quarter last year, the genomic sequencing business accounted for about 94% of Somagen's total sales. Major clients include US companies Variantyx, Admera Health, Johns Hopkins University School of Medicine and its affiliated institute LIBD (Lieber Institute for Brain Development), and Moderna.

Ryan Kim, CEO of Somagen, said, "As a result of the relentless efforts of all Somagen employees to provide consistently high-quality genomic sequencing services and strict adherence to delivery deadlines to ensure customer satisfaction, we have achieved the outcome of continuously expanding supply volumes to global companies and providing services." He added, "We will continue to expand our market share steadily in the US genomic sequencing market through discovering new clients and ongoing efforts to improve service quality."