[Special Stock] BioDine, the 'Exclusive Technology' Chosen by Roche, the World's No.1... Billions in Royalties Imminent

Biodine is showing strength. The revision of the cervical cancer prevention guidelines by the World Health Organization (WHO) appears to be influencing the stock price, as securities firms analyze that Biodine will benefit from this change.

At 2:30 PM on the 26th, Biodine was trading at 17,750 KRW, up 10.25% from the previous day.

Park Sun-young, a researcher at Mirae Asset Securities, explained, "According to the revised WHO guidelines, before performing colposcopy, an additional classification test by Roche has been added for HPV-positive patients." She added, "Roche's CINtec PLUS dual-staining test is the only test that has obtained FDA and CE certification for classifying HPV-positive patients."

She continued, "If the CINtec PLUS dual-staining test result is positive, immediate colposcopy is recommended. If negative, the risk of precancer is low, so follow-up testing can be conducted later."

Researcher Park emphasized, "Biodine possesses liquid-based cytology (LBC) technology using a patented blowing method that evenly deposits specimens on a slide by blowing air over the filter." She added, "Roche aims to expand into the cytology diagnostics market through CINtec PLUS, leveraging its advantage in HPV molecular diagnostics."

She analyzed, "The reason Roche, the world's number one in vitro diagnostics company, chose Biodine's LBC technology instead of strong cytology players like Hologic or Becton Dickinson is that the blowing method reduces cell damage and cell overlap compared to competing products, resulting in higher sensitivity and negative predictive value."

She further explained, "After six years of technical verification and transfer with Roche, a final 20-year exclusive contract was signed in 2022, automatically renewed every five years." She added, "Biodine receives fixed royalties per vial of LBC solution sold." She also mentioned, "Roche plans to launch its own LBC equipment applying Biodine's technology within this year, and royalties will be received in earnest starting next year."

Kwon Hae-soon, a researcher at Eugene Investment & Securities, predicted, "Considering Roche's position as the number one in vitro diagnostics company and the high accuracy and sensitivity of diagnostic kits produced using Biodine's technology, Roche's market share is expected to exceed 40% by 2029, the fifth year of sales generation." He added, "Biodine's sales in 2029 are expected to reach 91.4 billion KRW, and considering that most of the sales are from royalties, profitability will also be very high."

Researcher Kwon emphasized, "By around 2029, the female population eligible for cervical cancer diagnosis is estimated to be about 310 million, and the total population expected for screening in 2029 is approximately 1.56 billion." He added, "Biodine's operating profit is expected to increase from a deficit in 2023 to 62.6 billion KRW in 2029."