'Record-Breaking Performance' SD Biosensor... Leading the Industry into the 3 Trillion Won Sales Era?

First Half Sales Exceed 2 Trillion Won
Accelerating Global Expansion Through M&A

SD Biosensor 'AACC 2022' Booth

[Asia Economy Reporter Lee Gwan-joo] SD Biosensor, an in vitro diagnostics company, recorded a historic sales figure exceeding 2 trillion KRW in the first half of this year alone, bringing it on the verge of becoming the first domestic bio company to achieve annual sales of 3 trillion KRW. Amid continued strong sales centered on diagnostic test kits due to the COVID-19 pandemic, the company is accelerating efforts to secure additional growth drivers in the second half of the year.

According to the bio industry on the 4th, SD Biosensor's consolidated sales for the second quarter were tentatively estimated at 795 billion KRW, with an operating profit of 348.1 billion KRW. Operating profit decreased by 12.3% compared to the same period last year, but sales increased by 1.8%. The total sales for the first half of the year reached 2.18 trillion KRW, surpassing 2 trillion KRW already. This is attributed to the surge in demand for diagnostic kits and reagents both domestically and internationally due to the widespread outbreak of the COVID-19 Omicron variant earlier this year.

Among domestic pharmaceutical and bio companies, SD Biosensor is the only company to exceed annual sales of 2 trillion KRW. Last year, it recorded annual sales of 2.93 trillion KRW, surpassing major companies such as Celltrion (1.911 trillion KRW) and Samsung Biologics (1.568 trillion KRW), ranking first in industry sales. If the current trend continues, the general outlook is that SD Biosensor's annual sales will comfortably reach 3 trillion KRW. A bio industry insider said, "Since the COVID-19 pandemic is recurring over certain periods, the demand for diagnostic tests will continue steadily," adding, "It is unlikely that sales will suddenly plummet."

With record-breaking performance as ammunition, SD Biosensor is making a full-scale entry into the global market by successfully completing a historic merger and acquisition (M&A). Last month, it decided to acquire Meridian Bioscience, a U.S. in vitro diagnostics company listed on NASDAQ, for 2 trillion KRW, the largest scale in the domestic bio industry, marking the start of its entry into the North American market and securing production bases.

Earlier, in March and April, it acquired German in vitro diagnostic device distributor Bestbion and Italian distributor Rilab for 16.1 billion KRW and 61.9 billion KRW, respectively. Considering that 80% of SD Biosensor's sales come from overseas, more aggressive business expansion is expected. It is reported that SD Biosensor is looking for additional companies to acquire, including distribution companies for building a global distribution network as well as manufacturers.

The key going forward is securing sustainable growth drivers such as portfolio diversification. It is important to see how much success the next flagship product, the rapid molecular diagnostic device ‘Standard M10’, will achieve in the global market. The M10 is attracting attention as an innovative diagnostic device that shortens testing time to within one hour with accuracy at the level of polymerase chain reaction (PCR).

At the same time, the company is accelerating the development of a compact continuous glucose monitoring system (CGMS). SD Biosensor explained, "We expect significant sales generation through seven new M10 cartridges released in the second quarter and CE certified," adding, "The CGMS, based on a smaller size and extended sensor lifespan, is planned for release in 2024."

This content was produced with the assistance of AI translation services.