Seegene reports H1 2022 financial results

• H1 revenue fell 11% YoY to KRW 579.9 billion, operating profit down 37% to KRW 212.7 billion
• Decline due to drop in Q2 sales amid reduced PCR testing volume
• Sales of non-COVID products and PCR instruments increased in H1; Company launches STARlet-AIOS to strengthen sales foundation
• Seegene to expand In-life PCR campaign to help curb widespread COVID-19 transmissions and boost sales of non-COVID products to solidify revenue structure

SEOUL, South Korea, Aug. 12, 2022 /PRNewswire/ -- Seegene Inc. (KQ096530), South Korea's leading molecular diagnostics company, today reported first-half (H1) revenue in 2022 of KRW 579.9 billion (USD 445.8 million), down 11 percent year-over-year. Operating profit fell 37 percent to KRW 212.7 billion.

While Seegene posted record quarterly sales of KRW 451.5 billion in the first quarter, second quarter revenue was at KRW 128.4 billion. The decline can be attributed to a drop in PCR testing volume and inventory destocking at sales channels and customer accounts.

Sales of non-COVID products, however, rose 30 percent year-over-year to KRW 69.5 billion in H1. The second quarter figure was up 21 percent from the previous quarter amid a transition to normalcy from the pandemic and increasing customer acceptance of molecular diagnostics.

As for PCR instruments, Seegene installed 850 new PCR detection systems and 491 new workstations for extraction and PCR set-up, for a combined 5,704 and 2,803 installs respectively worldwide, strengthening the foundation for global sales. Seegene also launched its fully automated PCR system, STARlet-AIOS, for syndromic testing in key European markets. The company also began its In-life PCR campaign – a global initiative that emphasizes regular testing for respiratory viruses, including COVID-19, to help curb asymptomatic and widespread transmissions. It recently partnered with a testing center in Vietnam to launch the campaign.

Seegene further strengthened the leadership team at its U.S. subsidiary, appointing a new CEO, head of scientific and medical affairs and head of research and development (R&D), this year. The company plans to establish capacity for local R&D and product manufacturing within the U.S., the world's largest molecular diagnostics market, laying a foundation for mid-to-long term growth. Seegene also plans to seek U.S. Food and Drug Administration (FDA) clearance for key products starting next year.

"We expect to see ongoing demand for respiratory virus testing in fall and winter as the flu season starts in our key markets," said Robert Lee, Senior Vice President of Seegene's Investor Relations (IR) department. "Seegene's portfolio includes syndromic tests, including tests that can simultaneously detect COVID-19 and flu. We will use these multiplexed tests to expand our In-life PCR campaign, as well as strengthen sales of non-COVID products and STARlet-AIOS to create new PCR demand and solidify our revenue structure."