As the Pandemic Ends... Leading Beneficiary Seegene Reports '1Q Turn to Loss'

As the declaration of COVID-19 becoming endemic (periodic outbreak of infectious diseases) approaches, the molecular diagnostics company Seegene, which was a representative beneficiary of the pandemic (global outbreak), has posted a loss in its first-quarter earnings.

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Photo by Seegene

On the 12th, Seegene announced its provisional operating results for the first quarter of this year, reporting sales of 90.05 billion KRW, an operating loss of 13.773 billion KRW, and a net profit of 2.039 billion KRW. Compared to the same period last year, sales dropped by 80%, and operating profit turned into a loss. Net profit decreased by 99%.

The company explained, "The transition to endemic has significantly reduced the number of COVID-19 tests, which impacted sales." Among the total reagent sales of 67.7 billion KRW, combining diagnostic and extraction reagents, sales of COVID-19 diagnostic reagents amounted to 13.3 billion KRW, sharply decreasing to 20% of total reagent sales.

However, Seegene's non-COVID-19 segment, which the company is focusing on as the next growth engine amid the endemic transition, recorded sales of 46.3 billion KRW, continuing its sales growth. Seegene's non-COVID-19 products have maintained growth for seven consecutive quarters. During this period, the average year-on-year sales growth rate reached 35%. The share of non-COVID-19 products in total reagent sales also rose to 68%.

In particular, sales of respiratory virus diagnostic reagents increased by 119% compared to the same period last year, driving the sales growth. Seegene explained that with the easing of COVID-19 prevention measures, respiratory diseases such as influenza and respiratory syncytial virus (RSV) have become prevalent worldwide, leading to increased demand for Seegene's respiratory virus syndromic PCR tests.

Additionally, sales of gastrointestinal (GI) comprehensive diagnostic reagents increased by 64% compared to the same period last year. GI testing is steadily shifting from traditional culture tests to syndromic PCR tests, especially in advanced molecular diagnostics countries such as those in Europe, which is believed to have influenced product demand. Human papillomavirus (HPV) products also grew by 34% year-on-year as HPV testing was introduced for cervical cancer patient screening, expanding demand.

Seegene plans to leverage the molecular diagnostic equipment infrastructure expanded during the pandemic to continue growing its non-COVID-19 diagnostic reagent sales, while focusing on technology sharing projects and strengthening its business in the United States.