[IPO] Bionote, Growth Through Animal Diagnostics + Meridian Synergy

Joo Byung-ki, CEO of Bionote. / Photo by Bionote

[Asia Economy Reporter Jang Hyowon] BioNote, which is preparing for a KOSPI listing, announced plans to prepare for the post-COVID-19 era through its animal diagnostic business and raw material sales via its affiliate Meridian.

On the 8th, BioNote CEO Cho Byung-ki held an IPO press conference at Yeouido CCMM, presenting growth plans and vision after the listing.

Founded in 2003, BioNote operates in the in vitro diagnostic medical device business for humans, known as biocontents, as well as the animal diagnostic business. Based on its proprietary gene recombinant antigen and antibody technology development capabilities and manufacturing technology, it has distinguished itself in immunodiagnostics.

BioNote is the only private domestic company to possess a BL-3 (Biosafety Level 3) research facility for developing products related to infectious viral diseases. Through this, it can culture high-risk pathogens such as COVID-19, MERS, and monkeypox, enabling rapid response to new infectious diseases at any time.

Unlike peer companies that rely on OEM production, BioNote has an automated production system that can independently produce raw materials such as antigens and antibodies for up to 12 billion tests annually.

In the animal diagnostic business, the global cumulative sales of the immunodiagnostic device Vcheck F have surpassed 16,000 units, and the company is expanding its applied market through innovative technologies such as developing the world’s first automated pretreatment POCT PCR.

BioNote’s consolidated cumulative sales for the third quarter of this year amounted to 456.9 billion KRW, a 14.2% decrease compared to the same period last year. Operating profit also declined by 27.7% to 307.5 billion KRW, and the operating profit margin dropped from the 80% range to 67%.

As of the third quarter this year, 81% of BioNote’s sales come from SD Biosensor. The BioNote biocontents division mainly produces semi-finished COVID-19 diagnostic kits and supplies them to its affiliate SD Biosensor.

BioNote anticipates that sales of COVID-19 diagnostic kits will decrease by about 40% next year due to the end of the COVID-19 pandemic. Accordingly, it has a strategy to create synergy with Meridian, a global company and subsidiary of SD Biosensor.

CEO Cho Byung-ki stated, “If BioNote’s core competencies combine with Meridian’s strengths in molecular diagnostic raw materials, global brand sales, and FDA approval experience, synergy in sales, products, and production will be maximized. Entering both the immunodiagnostic and molecular diagnostic markets will enable us to secure a competitive edge in the global market.”

Meanwhile, BioNote plans to offer a total of 13 million shares. The desired public offering price band is 18,000 to 22,000 KRW. The maximum public offering size is 286 billion KRW. The raised funds will be used for new factory facility investments, acquisitions of domestic and overseas raw material companies, and North American distribution companies. Demand forecasting will be conducted until the 9th, followed by subscription on the 13th and 14th. NH Investment & Securities and Korea Investment & Securities are jointly managing the offering.