Somagen Reports Q3 Revenue of $18.42 Million... "Maintaining Stable Financial Structure"

Somagen, a US-based multi-omics specialized analysis company, announced on the 14th that its cumulative consolidated revenue for the third quarter reached approximately $18.42 million (about 24 billion KRW), with a cumulative operating loss of about $1.69 million (about 2.2 billion KRW).

Somagen leverages its recognition and unique positional advantages built over 19 years in the US mainland based on CLIA and CAP certifications. In the third quarter alone, it succeeded in securing large contracts such as a major national Alzheimer's analysis project from the US National Institutes of Health (NIH) (approximately 4.9 billion KRW) and expanded RNA analysis orders from Moderna (approximately 8.5 billion KRW). Some of the revenue will be reflected in the first half of next year. Due to investments in multiple additional multi-omics analysis platforms this year, the cumulative operating loss for the third quarter slightly increased compared to the previous year.

A Somagen representative stated, “Somagen’s greatest strength as a company specializing in genome-based multi-omics analysis is that it can operate its business by directly securing analysis contracts from national institutions and global pharmaceutical companies, thereby ensuring actual revenue.” They added, “Although many biotech companies are currently facing difficulties in fundraising, Somagen is a healthy company with a stable financial structure through efficient management.” They emphasized, “This year, despite some operating losses due to the expansion of multiple multi-omics analysis platforms, there is currently no need for additional fundraising.”

In the third quarter of this year, Somagen had a busy period securing large revenues and expanding its scope. In September, it announced an additional contract to supply whole genome sequencing (WGS) services for 10,000 Alzheimer's patients worth about 4.9 billion KRW. Additionally, it was officially registered as the primary vendor for the large-scale whole genome analysis project for Americans (TOPMed CORE 2.0). This gave Somagen the opportunity to participate in competitive bidding for a major national project worth a total of $500 million over the next 10 years. The company is continuously participating in US government-led national projects such as the Global Parkinson’s Disease (GP2) project led by the NIH, expecting significant revenue growth.

In July this year, Somagen expanded its genome sequencing service supply contract with Moderna to about 8.5 billion KRW, approximately eight times the previous amount. Furthermore, it has proven its multi-omics analysis capabilities in the US by supplying genome, single-cell, and proteome analysis services to global big pharma companies such as AstraZeneca, GSK, Sanofi, and Company E, successfully expanding its sales pipeline.

In August, Somagen further expanded its scope by investing in shares of its Japanese subsidiary, KEAN Health Corp. Through this investment, Somagen aims to launch direct-to-consumer genetic testing (DTCGT) services in the Japanese market in the near future via its subsidiary KEAN Health Corp.

Hong Soo, CEO of Somagen, emphasized, “Somagen’s activities this year have focused on expanding multi-omics analysis platforms and broadening its scope based on revenues secured through participation in large national projects in the US and analysis supply contracts with global big pharma.” He added, “Since US government agencies and global big pharma companies continuously request multi-omics analysis using Somagen’s platform, we expect a level of revenue growth in the future that is on a completely different scale from now.”