[Market Focus] 3billion Hits Record High on Hopes for U.S. Expansion

As of 9:20 a.m. on April 21, shares of 3billion, a genome analysis-based rare disease diagnostics company, were trading at 7,890 won, up 12.55% from the previous day's closing price. This marks the company's highest share price since its listing in November last year. The increase appears to be driven by expectations for entry into the U.S. market, which is the largest market, as well as the disappearance of concerns over overhang.

Founded in 2016, 3billion is a rare disease diagnostics company that applies artificial intelligence to analyze 3 billion genomes. As of last year, the company generated 70% of its revenue from overseas and provides rare disease diagnostic services in more than 70 countries.

3billion is working to establish a U.S. subsidiary within the first half of this year, with Texas being a likely location. The company is confident that its artificial intelligence (AI) technology will give it a competitive edge over GeneDx, the leading company in the U.S. rare disease diagnostics market.

Shinhan Investment Corp. analyzed, "If we consider that 3billion's average selling price (ASP) is 990 dollars, which is lower than the 2,500 dollars of GeneDx, the leading company in North America, the company is expected to have price competitiveness when entering the U.S. market in the future." Shinhan Investment Corp. also projected that 3billion would achieve quarterly operating profit between 2026 and 2027. GeneDx, for its part, achieved its first quarterly break-even point in the fourth quarter of last year, which led to its share price rising by about 90%.

Meanwhile, the lock-up shares (30% for one month, 25% for two months) that had been suppressing the stock price since the company's listing in November last year appear to have been mostly sold after the sale restrictions were lifted. Shinhan Investment Corp. stated, "Except for some investors who are investing from a long-term perspective, the overhang issue (a situation in which a large amount of potential sell orders exists in the market) has been resolved."