[Click eStock] "Osang Healthcare Expected to See Growth in Combo Kit Sales"

On August 19, Yuanta Securities predicted that demand for the Combo Kit from Osang Healthcare will increase starting in the fourth quarter of this year. The Combo Kit, which received formal 510(k) approval from the U.S. Food and Drug Administration (FDA), is a kit that can simultaneously diagnose COVID-19 and influenza A·B.

Kwon Myungjun, a researcher at Yuanta Securities, explained, "COVID-19 is spreading even in the midst of the heatwave," adding, "According to the U.S. Centers for Disease Control and Prevention (CDC), COVID-19 infections are either increasing or likely to increase in 34 states."

He continued, "To enhance our ability to respond to client demand for the Combo Kit, we will switch to an automated production line in the third quarter of this year," and added, "We expect improved profitability through labor cost savings and greater production efficiency."

He also stated, "We plan to add the capability to test for respiratory syncytial virus (RSV) to the Combo Kit," and predicted, "If we conduct clinical trials in the second half of this year and obtain FDA approval in the second half of next year, our relationship with client companies will be further strengthened."

In the second quarter of this year, Osang Healthcare recorded sales of 42 billion KRW and an operating profit of 6.4 billion KRW. Compared to the previous quarter, these figures increased by 30.8% and 57.5%, respectively.

Kwon noted, "Sales of the Combo Kit, which is a new growth driver, increased by 28.2% from 16.4 billion KRW in the first quarter to 21 billion KRW in the second quarter," and analyzed, "Sales of the blood glucose meter, which was previously the company's main product, also grew by 46.0%, from 11 billion KRW to 16.1 billion KRW."