[Featured Stock] LabGenomics Rapidly Grows with 0% Retest Rate Entering US Market... Cancer Prediction with Medical AI

LabGenomics is showing strong performance. As it provides health diagnostic services based on artificial intelligence (AI) algorithms, expectations for its technology, which can significantly reduce both testing time and costs compared to traditional tissue tests, appear to be influencing its stock price. This year, interest in medical AI technology companies has grown as the stock prices of Lunit, Vuno, and JLK have surged sharply in the domestic stock market.

As of 3:46 PM on the 29th, LabGenomics is trading at 5,180 KRW, up 4.02% from the previous day.

GenocoreBS, a subsidiary of the genome molecular diagnostics specialist LabGenomics, recently developed its own AI algorithm based on medical data. Using this AI algorithm, it supplies personalized ‘health diagnostic data services’ (IB services) to insurance companies and other financial institutions.

A representative from GenocoreBS stated, “We have developed the AI cancer diagnosis prediction platform Mesemble and completed preparations for related patent applications. Through a platform that provides epigenomic analysis services for cancer diseases, we analyze DNA methylation data and can predict cancer occurrence.”

Jonghoon Lee, CEO of LabGenomics, said, "The vast diagnostic result data built through testing will play a key role in the blooming digital healthcare market," and added, "We expect synergy through the fusion of LabGenomics’ diagnostic technology, LabGenomics Testing Center’s test data, and GenocoreBS’s IT capabilities."

LabGenomics is also starting a liquid biopsy diagnostic service targeting solid tumors. Using NGS-based precise high-sensitivity analysis techniques, it detects circulating tumor DNA fragments released from cancer cells in the blood. This is expected to increase treatment possibilities for cancer patients for whom tissue biopsy is difficult and provide opportunities to select optimal treatments.

According to JP Morgan and the IVD market, the liquid biopsy market size is expected to grow to $200 billion (approximately 230 trillion KRW) by 2027. Global diagnostic companies such as Guardant Health, along with many domestic diagnostic firms, are focusing their capabilities on developing liquid biopsy technologies.

The NGS-based liquid biopsy diagnostic service for solid tumors introduced by LabGenomics offers diagnostic accuracy similar to Guardant Health’s ‘Guardant 360 test.’ However, the service cost can be significantly reduced, which is expected to enable rapid market penetration.

In the diagnostic industry market, the liquid biopsy cancer diagnostic service is evaluated to have quickly entered the market through technical cooperation with IMBDX. Following the recent launch of cancer diagnostic services in the U.S. market through technical cooperation with NgenBio, LabGenomics is creating synergies with various domestic diagnostic companies.

CEO Jonghoon Lee emphasized, "We are the first in Korea to acquire a medium-to-large U.S. Clia lab and are discussing collaborations with various diagnostic content companies," adding, "We will successfully lead Korean diagnostic companies’ entry into the U.S. market."

LabGenomics has completed the development of cancer diagnostic NGS (Next-Generation Sequencing) services and plans to introduce them to its 100% U.S. subsidiary CliaLab QDX. The three types of cancer diagnostic services can be introduced directly to QDX as LDTs (Laboratory Developed Tests) without going through the FDA (Food and Drug Administration) track. The performance of all panel analysis services has been greatly improved, and cost reduction has been achieved, which is expected to increase profitability. In particular, BRAC1/BRCA2 analysis boasts a high accuracy rate with a 0% retest rate.

Earlier, on the 27th of last month, CEO Lee purchased company shares while acquiring CliaLab QDX. He said, "If LabGenomics technology is transferred to QDX, the cost of existing diagnostic tests in service can be reduced by about 30%," and added, "If additional diagnostic tests such as NGS are transferred, significant additional sales will be possible." He continued, "All employees have thoroughly prepared over a long period for the acquisition of CliaLab and the expansion of scale and profitability," emphasizing, "By 2027, QDX’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), excluding COVID-19 sales, is expected to increase to over 50 billion KRW."