[Market Focus] Noel Shares Surge on News of Gates Foundation Group Meeting

As of 10:05 a.m. on August 21, shares of Noel, a KOSDAQ-listed bio company specializing in blood and cancer diagnostics, were trading at 2,220 KRW, up 20.65% from the previous closing price. This surge appears to be driven by renewed attention to Noel's connection with the Gates Foundation, coinciding with Microsoft founder and Gates Foundation Chairman Bill Gates' first visit to Korea in three years.

Noel manufactures and sells miLab, an on-device AI solution for blood and cancer diagnostics. The device, about the size of a toaster, automates labor-intensive pre-processing steps such as smearing and staining, which previously required skilled professionals. In addition, the AI technology built into the device replicates the interpretation work of experts. By minimizing user intervention during the testing process, the risk of human error is greatly reduced, and highly reliable AI-based diagnostic results can be obtained without the need for internet connectivity or cloud servers. Currently, miLab offers three solutions: malaria diagnosis, peripheral blood smear testing, and cervical cell analysis.

Regarding the malaria product, miLab is being used by the Korea Disease Control and Prevention Agency, global pharmaceutical company Novartis, U.S. diagnostic laboratory INOVA, the Swiss Tropical and Public Health Institute, and the Carlos III Health Institute in Spain, among others. In 2023, Noel received 4 billion KRW in funding from the Right Foundation-an international health technology research fund jointly funded by the Korean Ministry of Health and Welfare (50% stake) and the Bill & Melinda Gates Foundation (25% stake)-to support global clinical research and cost-effectiveness analysis of miLab.

On August 20, the Right Foundation announced that CEOs of domestic pharmaceutical and bio companies, who are members of the foundation’s board, held a meeting in Seoul with Trevor Mundel, President of Global Health at the Gates Foundation. This was the first time since the Right Foundation’s establishment in 2018 that the Gates Foundation president met face-to-face with member companies. The foundation reported that, during the roughly one-hour closed-door meeting, participants discussed the Gates Foundation’s global health investment strategies and the progress of the domestic bio industry in developing vaccines, therapeutics, and diagnostic devices. Companies in attendance included Noel, Bioneer, EuBiologics, LG Chem, SD Biosensor, SK Bioscience, and Quadmedicine.

Meanwhile, last year Noel posted sales of 1.6 billion KRW but recorded a net loss of 22.5 billion KRW, further widening its deficit.