Macrogen said that it posted 122.3 billion won ($97.6 million) in sales last year, up 8 percent from 2018. However, the company registered operating and net losses of 700 million won and 13.4 billion won, respectively, down 22 and 884 percent over the cited period.
"The increased sale on a consolidated basis was attributable to steady growth in the genome analysis business targeting researchers," the company said. "Notably, the research sequencing business of Macrogen’s head office and Japanese subsidiaries contributed to sales growth by achieving stable results every quarter."
The decline in operating profit was due to the increase in investment costs for pioneering the global microbiome service market and direct-to-consumer (DTC) genetic testing services launched by Psomagen, the company's U.S. subsidiary, from the first half of last year, the company added.
Macrogen said it invested 3.3 billion into Microba, an Australia-based microbiome analysis company, and into acquiring uBiome, a leading microbiome company in the U.S., for 8.3 billion won by forming a consortium with Psomagen. Through the takeover of uBiome, Macrogen acquired all of the 246 patent portfolios owned by uBiome and its real assets, such as data and laboratory equipment.
"As a result, our company has gained a core competitive edge in the field of microbiome analysis and has a dominant competitive advantage in global markets, including the U.S.," Macrogen said. "Besides, cost increase resulting from Psomagen's new laboratory construction and marketing expansion as well as temporary cost-push related to the company's initial public offering (IPO) procedures combined to aggravate our profit indexes.”
"Last year, we could solidify the foundation of our business-to-consumer platform, including aggressive investments in global microbiome analysis companies and asset acquisitions, and the purchase of an office building in Gangnam, southern Seoul, which has excellent customer access," Macrogen CEO Yang Kap-seok said.
This year, the company will make every effort to drive sales growth with various service differentiation, while working to list Psomagen on the Kosdaq market, Yang added.
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