NGeneBio, a company specializing in next-generation sequencing-based precision diagnostic platforms, said Wednesday that it has signed a business agreement with Genolution, a molecular diagnostics company.

"We signed this business agreement to provide NGS (next-generation sequencing) testing services more quickly and accurately by utilizing the advantages of Genolution's nucleic acid extraction automation technology and NGeneBio's NGS precision diagnosis technology," an NGeneBio official said.

Genolution is a biotech company specializing in RNA. It offers nucleic acid extraction automation equipment solutions applicable to various areas, from viral diseases such as cervical cancer and influenza to sexually transmitted infections and intestinal bacteria. NGeneBio has industry-leading NGS technology in in-vitro diagnostics and cancer diagnostic products and software technology, and the company said the synergistic effect of the two companies is expected.

According to NGeneBio, through this business collaboration, NGeneBio and Genolution will launch a scalable system to automate the entire workflow of NGS testing, including nucleic acid extraction, library construction, and data analysis.

It added that as part of the joint business development, the companies would also cooperate on the package business of NGS automation equipment and precision diagnostic panels, joint marketing utilizing the overseas sales networks of both companies, and global distribution cooperation.

NGS precision diagnostic tests require a fairly complex pretreatment process, including multiple manual operations. This has resulted in low sensitivity and reproducibility, which can lead to large deviations in test results. With the scalable system to be developed through this agreement, NGeneBio plans to solve problems that may arise from complex NGS pretreatment work, reducing the effort of clinical sites and contributing to the popularization of NGS precision diagnostics, according to NGeneBio.

"With the scalable system, we can provide faster and more accurate NGS tests, such as preventing errors caused by manual work and reducing test time," the NGeneBio official said.

A Genolution official said, "We expect to accelerate our entry into the field of NGS-based precision diagnostics through this business agreement with NGeneBio. “We also look forward to developing our nucleic acid extraction technology for precision diagnostics."

According to global market research firm BIS Research, the global NGS library production automation market is expected to grow at an annual average of 14.85 percent from $1.27 billion (1.64 trillion won) in 2021 to $3.83 billion by 2029.