“This month, we are set to acquire two CLIA laboratories in the United States. This initiative, eagerly anticipated since our listing on the Kosdaq in 2020, is nearing its conclusion. We aim to establish new sales avenues in the U.S. and anticipate a significant leap in this year’s performance.”NGeneBio CEO Choi Dae-chul
South Korea’s biotech NGeneBio CEO Choi Dae-chul stated in an interview with ChosunBiz on Mar. 6 at NGeneBio’s Seoul headquarters in Guro-gu, Seoul. He expressed enthusiasm for the nearing completion of the acquisition, a move NGeneBio had hinted at when it went public on the Kosdaq market in December 2020.
NGeneBio sells precision diagnostic reagents and related software built on next-generation sequencing (NGS) technology. NGS testing allows for the detailed analysis of cancer patients’ DNA through blood or tissue samples, streamlining the identification of effective cancer drugs and treatment plans. This approach is notably more efficient than the traditional trial-and-error method of finding suitable medications.
Choi stated that NGS technology, initially complex to many, has become more relatable through high-profile cases. For instance, actress Angelina Jolie’s decision to take preventive surgery following an NGS test that showed a high risk for breast cancer and Apple co-founder Steve Jobs’ use of NGS tests for his pancreatic cancer treatment has highlighted the technology’s potential.
A key asset of NGeneBio is its proprietary NGS data analysis software, NGeneAnalySys (NGAS), which is the only developer of such technology in Korea. This software is now being employed by major hospitals both locally and internationally, aiding in interpreting NGS test results and formulating cancer treatment strategies.
Choi said, “From just a drop of blood, we can extract millions of pieces of genetic information, translating into volumes of data, and it takes several days for analysis. Our comprehensive NGS diagnostic portfolio covers various cancer types, and we can deliver a genetic report to patients within three hours using our cloud-based system.” He also emphasized that this efficiency underpins the company’s global expansion efforts.
Moreover, NGeneBio is extending its reach internationally with the NGS diagnostic reagents compatible with Illumina’s widely used NGS instruments. The company’s NGS testing systems are currently used in prestigious hospitals across Romania, Singapore, Vietnam, Germany, Poland, and Türkiye. The NGAS, which requires NGeneBio’s reagents, ensures a continued demand for their products.
The company is poised to make significant inroads into the U.S. market this year, with the acquisition of a U.S. CLIA lab marking a critical step. CLIA certification, issued by the U.S. Centers for Medicare and Medicaid Services, validates a laboratory’s capability to conduct clinical tests with accuracy, reliability, and relevance for disease diagnosis, prevention, and treatment.
“POST-COVID-19, the asking prices for CLIA labs in the U.S. surged, marking acquisitions challenging. However, we were fortunate to find a profitable company with advanced technology after the pandemic,” Choi remarked.
