[Click eStock] "Geninus to Achieve External Growth with Single-Cell Analysis Technology"

Daishin Securities Report

[Asia Economy Reporter Minji Lee] Daishin Securities expressed on the 15th that Geninus, a genome analysis specialized company, is expected to achieve solid external growth due to its highly promising single-cell analysis technology.

Geninus has established a diverse diagnostic portfolio centered on its integrated analysis platform, OncoStation, including single-cell analysis, NGS cancer diagnosis, and personalized (DTC) healthcare services. The company holds top-tier domestic cancer genome information data, giving it an advantage over competitors in the bioinformatics field that provide meaning to analyzed nucleotide sequence data.

Single-cell analysis is a concept of analyzing gene expression levels and changes in individual cells using RNA sequencing technology. It allows for more precise analysis compared to traditional tissue-level analysis. This technology can be utilized for biomarker discovery and new drug development. Researcher Han Song-hyeop from Daishin Securities stated, “Geninus has completed building its single-cell analysis lineup and provides a total solution including specimen preprocessing and customized result reports,” adding, “Last year, single-cell analysis sales reached approximately 5.6 billion KRW, a 6.4-fold increase compared to the previous year.”

The company also demonstrated its technological capabilities at the American Society of Clinical Oncology (ASCO) this year through a poster presentation on neoantigen screening technology and liquid biopsy using single-cell analysis. Researcher Han said, “The neoantigen cancer vaccine showed a higher antigen screening accuracy (43%) compared to global competitors by utilizing single-cell analysis,” and added, “Preclinical data will be derived in the third quarter, with results to be announced within the year.”

In May, Geninus signed a healthcare business agreement based on genetic information with Kakao Healthcare. The two companies plan to jointly promote DTC personal genome diagnostic services and precision medical AI platform businesses. In the upcoming fourth quarter, genome analysis services for employees will begin at Kakao’s in-house hospital. Meaningful DTC genome analysis sales are expected to be reflected starting in 2023.

Researcher Han evaluated, “In the DTC field where consumer accessibility is important, leveraging the powerful platform of Kakao is expected to secure a leading position in the newly emerging DTC market,” and added, “The accumulation of databases through providing DTC genome analysis services is also anticipated.”

The company is predicted to record improved performance in the second quarter compared to the first quarter. Although first-quarter sales were 1 billion KRW, showing a decline compared to the same period last year, sales of 4.1 billion KRW from the Korea Disease Control and Prevention Agency project are expected to be reflected starting in the second quarter.