[Click eStock] "Somagen, Global Big Pharma as Clients... Expected to Benefit from Biosecurity Act"

GL Research analyzed on the 15th that Psomagen is a genome analysis company with global big pharma as its clients, and it is expected to benefit from the enactment of the Biosecurity Act. No investment opinion or target price was provided.

Psomagen, Inc. was established in December 2004 in Maryland as the U.S. subsidiary of Macrogen, a Korean genome analysis company. It primarily provides genome analysis and precision medicine services based on the North American market.

Its major clients include global big pharma companies such as Moderna and AstraZeneca. Changyoon Park, a researcher at GL Research, stated, "One of the major clients, Moderna, has been doing business with them since 2014 and has consistently recorded sales growth to date," adding, "The transaction volume with Moderna has risen significantly to about 8 billion KRW annually, leading other global pharmaceutical companies such as AstraZeneca and GSK to join as key clients." He further noted, "Through expanding relationships with these pharmaceutical companies, Psomagen is gradually increasing its recognition within the United States."

He also evaluated that Psomagen has been continuously participating in large-scale projects led by U.S. national agencies, thereby securing references. He said, "Since 2014, Psomagen has participated in numerous large genome analysis projects led by U.S. national agencies, including the TOPMed project," adding, "Based on this, they are currently involved in two Alzheimer's genome analysis projects by the U.S. National Institutes of Health and the GP2 global Parkinson's disease genome analysis project led by the Michael J. Fox Foundation." He continued, "By providing essential foundational data for Parkinson's disease research and new drug development, Psomagen is expected to lead the next-generation precision medicine market."

GL Research expects Psomagen to gain a secondary benefit from the enactment of the Biosecurity Act. The researcher emphasized, "The Biosecurity Act is legislation by the U.S. government that restricts Chinese companies' access to bio data within the U.S. for national security reasons," adding, "As a result, Psomagen is expected to solidify a favorable position by surpassing Chinese competitors in large-scale U.S. government projects."

In particular, profitability improvement is also anticipated through the development of integrated clinical analysis services. He explained, "Clinical report services provide higher added value by including clinical data beyond general genome analysis," and added, "Psomagen is expected to play a more important role in the precision medicine market and new drug development by providing integrated genome analysis results and clinical reports to large pharmaceutical companies and research institutions, thereby creating synergy."