Bodytechmed Records 61.4 Billion KRW in Sales and 11.9 Billion KRW Operating Profit in First Half of This Year

[Asia Economy Reporter Lee Gwan-ju] Boditech Med announced on the 8th that its consolidated sales for the first half of this year amounted to 61.4 billion KRW, with an operating profit of 11.9 billion KRW on a provisional basis. Sales in the second quarter recorded 24.1 billion KRW, down 42% year-on-year, and operating profit was 3 billion KRW, down 81%.

Boditech Med's first-half sales showed growth as demand for its main products continued steadily, but sales of COVID-19 related products shrank, resulting in about a 20% decrease compared to the same period last year.

During the same period, operating profit decreased by about 60% year-on-year due to fixed costs from investment in production facilities, increased R&D expenses from ongoing clinical trials, and increased selling and administrative expenses due to the expansion of supply of TDM (Therapeutic Drug Monitoring) products.

In July last year, Boditech Med secured a land area of 9,689㎡ near its headquarters to expand cartridge production facilities and is currently expanding its production lines. The plan is to increase production capacity to enable the annual production of 150 million cartridges by the end of this year.

Continuous R&D investment, including expansion of research and development facilities to improve product performance and reinforcement of professional personnel, is also a factor in the decrease in operating profit. Research and development equipment to enhance research capabilities is being sequentially introduced at the R&D center completed in the first half of the year. Currently, the number of personnel involved in the development of diagnostic devices and diagnostic kits has reached 107.

Boditech Med expects sales to grow in the second half of the year due to increased sales of COVID-19 products and achievements in TDM products overseas. The saliva self-diagnostic kit 'Boditech Quick COVID-19 Ag Saliva,' which obtained export approval in May, significantly improved performance compared to existing export products (sensitivity 90%, specificity 100%) and secured price competitiveness by reducing costs by more than half.

Regarding the TDM business, supply of infliximab products to Celltrion Healthcare's Italy branch began in June, and from the third quarter, sales of TDM products are expected to occur at 'Theradiag' in France, which leads the global TDM market.

Choi Eui-yeol, CEO of Boditech Med, said, “Due to the resurgence of COVID-19, related sales are expected to increase in the second half, and we expect to achieve results with the full-scale supply of TDM products to the European market and approval of self-diagnostic kits by the US FDA.” He added, “Even excluding COVID-19 related sales, we will establish ourselves as a leading global point-of-care diagnostic company representing Korea based on overseas sales through various pipelines.”