LabGenomics, Q1 Overseas Sales Increase 100x YoY... This Year Marks the First Year of US Expansion

LabGenomics announced on the 16th that its overseas sales in the first quarter grew approximately 100 times year-on-year, reaching 12 billion KRW.

The growth was driven by QDx Pathology, a CLIA LAB ranked among the top 100 in the U.S., which was acquired in August last year. LabGenomics' U.S. subsidiary recorded sales of about 12 billion KRW in the first quarter. It is evaluated that the overseas market centered on the U.S. is filling the sales gap of COVID-19 diagnostic kits after the endemic phase.

On a consolidated basis, first-quarter sales amounted to 19.9 billion KRW, with an operating loss of 6.1 billion KRW. Sales increased by 35% compared to the same period last year, but operating profit turned to a loss. The company explained that the highly profitable COVID-related sales completely disappeared, and simple accounting costs such as purchase price allocation (PPA) arising from the QDx acquisition were reflected.

Kim Jeong-ju, CEO of LabGenomics, said, "Through the acquisition of CLIA LAB, we have successfully entered the U.S., the world's largest diagnostic market, and from the third quarter of this year, profitability is expected to improve significantly with the transition to laboratory-developed tests (LDT)." He added, "We will become a pioneer in the U.S. market using Korean diagnostic technology through additional CLIA LAB acquisitions in the near future."

He continued, "We will steadily pursue the company's fundamental strategy, expand existing business capabilities, and explore various new business opportunities."

Meanwhile, LabGenomics announced during an IR session held in March that it completed the development of RPP (Respiratory Pathogen Panel) and GPP (Gastrointestinal Pathogen Panel) kits, which can test for respiratory infections, viruses, and bacteria, in the first quarter of this year. The company is currently undergoing procedures for registration in the U.S. and plans to officially transition to LDT from the third quarter. It also added that the development of sexually transmitted infection kits is in the final stages, with plans for LDT transition in the third quarter.