SAN FRANCISCO, Calif. -- By Lee Han-soo/Korea Biomedical Review correspondent – Despite having acquired Meridian Bioscience, a global multinational diagnostic company, and posting nearly 3 trillion won ($2.49 billion) in sales in 2022, investors’ interest in SD Biosensor seems to have faded.

The corporate session of SD Biosensor, held during the 2023 J.P. Morgan Healthcare Conference at JW Marriot Hotel on Tuesday, was nearly empty, with only a handful of participants sitting down to hear the company’s future goals. 

SD Biosensor, which grew explosively in the wake of the Covid-19 pandemic, faces a negative business outlook in 2023. Analysts expect a large decline in sales this year because of an inevitable slide in interest in Covid-related products with the pandemic becoming endemic. 

According to a recent SangSangIn Investment & Securities Co. report, the company is expected to post sales of 1.33 trillion won, down 55.39 percent from last year. The report also outlined that the company expected operating and net profit will be 471 billion and 351 billion won, down 64.92 and 72.91 percent, respectively.

Investors said the company's future value will depend on how well it proves its capabilities in the global market with non-Covid-19 diagnostic products.

Despite the lack of interest from global investors, the company said it would use core strategies such as M&A to compete in the global diagnostic market.

SD Biosensor aims to acquire Meridian Bioscience, launch new point-of-care (POC) products and a rapid molecular diagnosis platform, and purchase new diagnostic companies worldwide, SD Biosensor COO Serena Cho said.

Cho stressed that the company expects great synergy effects on global sales expansion.

“The North American region has big market potentials as it covers approximately 40 percent of the global in-vitro diagnostic market,” Cho said. “Limitations for companies outside of the U.S. is that they face difficulties registering items to the U.S. FDA and securing a distribution network in the region.”

However, Cho stressed that SD Biosensor has resolved such limitations by acquiring Meridian.

“Another important synergy point is that the main markets for SD Biosensor and Meridian are different,” Cho said. “The M&A will create mutual synergy for the two companies in entering major countries.”

Cho also explained that the company plans to launch brand new POC products such as STANDARD M10, a rapid molecular diagnosis platform, Fast RT-PCR (reverse transcription-polymerase chain reaction), continuous glucose monitoring system (CGMS), and chemistry and fluorescent immunoassay POC platform.

“Notably, SD Biosensor’s next-generation diabetes care total solution will provide an all-in-one CGMS that provides information such as glucose, ketones, oxygen saturation, and lactase,” Cho said. “On top of such information, the solution will also be equipped with an artificial intelligence-based insulin pump, which will integrate data from CGMS and automatically deliver insulin.”

Cho also unveiled the company’s next M&A plans.

SD Biosensor acquired three foreign diagnostic companies in 2022 alone. 

In 2023, the company will expand direct sales in at least 10 new countries and set up automation production facilities in the U.S., Cho added.