Dx&Vx, Pioneering a New Path as a Profitable Bio Company

330% Sales Increase and Successful Turn to Profit
Shareholders Anxiously Waiting for Trading Resumption...

Dx&Vx, a bio-specialized company listed on KOSDAQ, has succeeded in turning a profit.

According to the Financial Supervisory Service's electronic disclosure on the 14th, Dx&Vx announced its preliminary performance last month, recording provisional sales of 32.2 billion KRW and an operating profit of 2.5 billion KRW last year. Sales increased by 330% compared to the previous year, and the company succeeded in turning an operating profit.

The predecessor of Dx&Vx was Cancerop, which is currently suspended from trading due to a refusal of audit opinion in 2019. The main reason for the trading suspension at that time was deficit management. However, despite receiving an 'appropriate' opinion through re-audit in 2020, the trading suspension has continued to this day.

The largest shareholder of Dx&Vx changed to Lim Jong-yoon, CEO of Hanmi Pharmaceutical, in October 2021. CEO Lim is the son of the founder of Hanmi Pharmaceutical and currently serves as president of Hanmi Pharmaceutical. At that time, Lim became the largest shareholder of Dx&Vx through a third-party allotment capital increase worth 20 billion KRW.

The reason Dx&Vx was able to record strong performance last year is analyzed to be due to the new management strengthening both financial and non-financial capabilities and improving the management structure.

Additionally, the company expanded its Genomic CRO business, leveraging its core molecular diagnostics capabilities, into domestic and international B2B markets. At the same time, the new bio-healthcare business, which started with the new corporate motto of providing microbiome-based healthcare solutions through diagnostics, is known to have driven sales growth.

Furthermore, by acquiring Korea Biopharm, which owns GMP production facilities, as a 100% subsidiary, Dx&Vx supported external growth and completed an integrated business structure connecting 'research-development-clinical-production-distribution.' Since last year, the company has been leading each business area proactively by recruiting experts in various fields, and the performance improvement trend is expected to continue this year.

In particular, Dx&Vx's influence and sales in China are expected to grow rapidly at an early stage. Dx&Vx established a 100% subsidiary in Beijing called ‘Beijing DIWEISI Biotechnology Co., Ltd.’ This company plans to independently build online and offline distribution networks in the Chinese market and expand healthcare networks including Chinese hospitals, pharmacies, and online channels.

It also plans to supply microbiome-based proprietary brand products, pharmaceuticals, and bio-healthcare products locally in China. Additionally, it will conduct distribution of major pharmaceuticals in the Chinese market. The goal is to eventually perform management roles for domestic bio-healthcare companies entering China.

The company expects that the experience and networks of the key figures at the time, including Chairman Lim Jong-yoon who laid the foundation for Beijing Hanmi Pharmaceutical, will be leveraged through the Chinese subsidiary.

In fact, Lim Jong-yoon, the largest shareholder of Dx&Vx and president of Hanmi Pharmaceutical, served as vice president (chairman of the board) of Beijing Hanmi Pharmaceutical, leading its growth through R&D, numerous clinical trials with large hospitals, market expansion, and diversification, thereby establishing a stable foothold in the Chinese market.

Going forward, Dx&Vx plans to build a supply system for semi-finished and finished products using ‘bacteria,’ as well as consumer goods, industrial goods, and mass production. In particular, it plans to develop and launch bio-healthcare solution products linked to diagnostics.

It also plans to steadily acquire tangible and intangible overseas assets to build future growth engines such as additional GMP production bases and pharmaceutical pipelines in R&D, and to establish pipelines for preclinical and clinical trials in cooperation with European research institutes and large hospitals.

Currently, clinical phase 1 trials of the anticancer vaccine OVM-200 are underway through its UK subsidiary, and the company is also participating in clinical trials for diabetes and obesity treatments conducted by Cori Company’s Italian branch. The company is considering transferring two preclinical pipelines using microbiomes to Dx&Vx if trading resumes successfully.

Having succeeded in improving its structure, Dx&Vx is undergoing a listing qualification review by the Korea Exchange. The review resumed on January 10, and the exchange is expected to quickly decide on resuming trading after receiving last year’s external audit opinion. However, the date of the review has not been disclosed, causing anxiety among shareholders. If trading resumes, CEO Lim Jong-yoon plans to place his shares under a three-year lock-up.

A Dx&Vx official said, “Our goal is to provide microbiome-based bio-healthcare solutions through diagnostics, developing diagnostic products, prevention and treatment solutions, and covering supply of materials and components related to ‘bacteria,’ aiming to become an all-in-one healthcare company.”