[Market Focus] Diagnostic Kit Stocks Such as Sugentech Surge on Nipah Virus Concerns

Diagnostic kit stocks such as Sugentech are showing strong performance. This is interpreted as a result of growing concerns over the emerging infectious disease, Nipah virus.

As of 9:55 a.m. on May 19, Sugentech was trading at 6,580 won, up 19.42% (1,070 won) from the previous trading day. In addition, related stocks such as LabGenomics (up 10.49%), Genexine Life Science (up 9.93%), GeneMatrix (up 8.28%), and Access Bio (up 5.05%) are all showing significant gains.

According to the Korea Disease Control and Prevention Agency and other sources, a proposal to designate Nipah virus infection, which was previously an unregulated infectious disease, as a Class 1 infectious disease recently passed a review and resolution by the Infectious Disease Management Committee. The new designation as a Class 1 statutory infectious disease is expected as early as July, following consultations among relevant ministries.

Class 1 infectious diseases are the most dangerous diseases that require national-level management. This new designation is the first in five years since the emergence of COVID-19.

The Nipah virus, which mainly occurs in Southeast Asia and India, is a zoonotic disease that can infect both humans and animals. It is known to have a fatality rate of up to 75%.