Operating profit dipped slight due to powerful investment in R&D
Scheduled to introduce new diagnostic tests capable of screening 22 targets, including 3 genes of COVID-19 and 19 respiratory viruses in a single tube
SEOUL, South Korea, Nov. 23, 2021 /PRNewswire/ -- Seegene Inc. (KQ 096530), a leading biotechnology firm specializing in molecular diagnostics (MDx) has announced financial results for the third quarter ended September 30, 2021.
Seegene reported third-quarter sales revenue of KRW 305.3 billion (approx. USD 260 million) and operating profit of KRW 128.6 billion (approx. USD 108 million), up 1% and down 11% QoQ, respectively.
To date, Seegene's accumulated sales stand at KRW 960.8 billion (approx. USD 814 million), a 40% increase compared to the same period last year. Its accumulated operating profit also increased by 11% year-over-year, standing at KRW 466.7 billion (approx. USD 395 million). Given such figures, the total sales this year seem to have surpassed the KRW 1 trillion mark, however, the slight drop in operating profit is driven by an aggressive increase in research and development spending. Throughout 2021, Seegene has already invested approximately KRW 53.4 billion (approx. USD 45 million), the doubled amount of the previous year's total R&D spending, in digitizing the assay development process and developing indigenous technologies for PCR instruments and assay ingredients.
"As we look ahead to the final months of 2021, the world is fortunate to have a range of highly effective COVID-19 vaccines and therapies, which are reaching more and more individuals. However, the need for testing remains, particularly as influenza and other viruses make their return in winter season," said Myungkun Kim, Seegene's Senior Managing Director. "Seegene is committed to being at the forefront of this diagnostics field, by anticipating and supporting new assays for COVID-19 and other infectious illnesses. Even as the pandemic evolves and more companies enter this space, we will continue to identify opportunities, staying competitive and working quickly to meet global demand through our various subsidiaries."
Seegene has been a leader in the global response to the COVID-19 pandemic, leveraging its proprietary artificial intelligence (AI) platform to develop one of the world's first COVID-19 assays in a matter of days. With full automation and integration, the company has also shown it can rapidly scale its manufacturing to serve regions around the world. In response to a recent introduction of 'living with COVID' initiatives and vaccine passports, Seegene will continue this targeted innovation by producing a series of additional tests. It will soon offer a new testing solution with a much faster turnaround time, which will help streamline and scale up surveillance testing. Furthermore, Seegene will introduce new diagnostic tests that can screen 22 targets, including 3 genes of COVID-19 and 19 respiratory viruses in a single tube to prepare for a possible surge of both influenza and COVID-19 cases in winter season.