Seegene hit hard by end of COVID-19 pandemic
Seegene's headquarters in Songpa District, Seoul / Courtesy of Seegene
By Kim Jae-heun
Seegene slipped into the red in the first quarter of this year due to a drop in the number of people testing for the virus as it is shifting to an endemic phase in much of the world, company officials said Friday.
Seegene CEO Chun Jong-yoon
The COVID-19 PCR test kit maker posted a 13.8 billion won ($10.35 million) operating loss for the first three months of 2023, while sales plunged to 90.1 billion won, down by 80.1 percent from the same period last year.
“The country's transition from COVID-19 pandemic to endemic played a significant role in dropping the number of PCR tests, which impacted our sales,” Seegene said.
The company recorded total reagent sales of 67.7 billion won, which includes its diagnostic reagents and extraction reagents. In Korea, its sales of COVID-19 diagnostic reagents dropped to 13.3 billion won, reducing its share to 20 percent of all reagents it sold.
Sales of diagnostic reagents for uses other than COVID-19 tests hit 46.3 billion won, accounting for 68 percent of the total reagent sales ― growing 47 percent, year-on-year.
Seegene's non-COVID-19 products continued to grow for the seventh consecutive quarter during the COVID-19 transition to an endemic, with an average revenue growth of 35 percent, year-on-year.
Among non-COVID-19 products, the company's sales of respiratory virus diagnostic reagents increased by 119 percent compared to last year's first quarter. Its revenue from general diagnostic reagents soared 64 percent in the same period.
Sales of human papilloma virus (HPV) products increased 34 percent year-on-year, thanks to an increase in demand in a number of countries that are using it to test cervical cancer patients.
Seegene plans to promote non-COVID-19 diagnostic reagents based on infrastructure such as molecular diagnostic equipment which have increased during the pandemic, while focusing on technology-sharing and strengthening its business in the United States.
The company's U.S. subsidiary produced its first research-use-only product at a local production facility in the first quarter and its research center began developing new products.