[Click eStock] "LabGenomics to Acquire Additional US Clearlab in Q2 This Year... Expecting Revenue Growth"

The Korea IR Association analyzed on the 12th that LabGenomics plans to additionally acquire the US-based CLIA Lab in the second quarter of this year, expecting growth in overseas sales.

LabGenomics is a company primarily engaged in NGS (Next-Generation Sequencing) and PCR testing. Its strength lies in possessing the largest hospital network domestically, including over 3,000 hospitals and more than 200 specialized obstetrics and gynecology hospitals. With the end of the COVID-19 pandemic leading to a decrease in PCR demand, the company is seeking growth opportunities through the acquisition of the US-based CLIA Lab.

Kim Taehyun, a researcher at the Korea IR Association, explained in a report on the same day, “LabGenomics acquired QDx Pathology Services, a US CLIA Lab, in August last year,” adding, “They are implementing a strategy to convert the currently used in vitro diagnostic products at QDx into their own LDT (Laboratory Developed Test) to reduce costs and maximize sales by exporting products from LabGenomics and its partners.”

Researcher Kim stated, “In the long term, to respond to the strengthening VALID ACT, the US subsidiary LabGenomics USA LLC plans to manufacture and sell IVD (in vitro diagnostic) products,” and added, “It is expected that LDT services using LabGenomics’ products will begin at QDx in the first half of this year, and there are plans to additionally acquire CLIA Lab in the second quarter.”

Through this, LabGenomics aims not only to grow overseas sales but also to drive domestic sales growth through synergy effects.

It was also highlighted that LabGenomics holds a dominant competitive edge in the PGS (Personal Genome Service) market.

Researcher Kim explained, “Currently, LabGenomics holds the number one market share in the domestic DTC (Direct-to-Consumer) genetic testing market,” and added, “Since 2022, they have been supplying 600,000 DTC tests annually to BankSalad, a MyData specialized company, and in April last year, they began supplying personal genetic testing services to Amorepacific and Samsung Electronics.”

He further added, “They are also pursuing overseas market expansion by signing contracts with genetic testing centers and distributors in Vietnam, Malaysia, Thailand, Saudi Arabia, and Greece.”