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Seegene Posts 7 Percent Decline in Q3 Revenues Due to Reduction in COVID Testing

NEW YORK — South Korean molecular diagnostics firm Seegene reported on Tuesday a nearly 7 percent year-over-year decline in revenues for the third quarter as lower sales of its infectious disease testing reagents more than offset gains in sales of its PCR equipment.

For the three-month period ended Sept. 30, Seegene's revenues were 305.3 billion ($256.0 million) compared with 326.9 billion in the year-ago quarter.

Total reagent sales were down 9 percent to 257.1 billion from 283.2 billion a year ago, with sales of COVID-19 testing reagents falling 11 percent to 195.6 billion from 219.6 billion. Sales of non-COVID-19 reagents were up 33 percent to 34.9 billion from 26.2 billion the year before. Third quarter equipment sales, meantime, rose nearly 11 percent to 48.2 billion from 43.6 billion in Q3 last year.

By region, sales in Europe contributed 50 percent to total revenues; sales in Korea 14 percent; sales in other parts of Asia, Africa, and Oceania 17 percent; sales in North America 9 percent; and sales in Central-South America 9 percent.

Seegene's net income in the quarter dropped to 93.2 billion from 152.5 billion a year earlier.

Contributing to the lower earnings was an almost threefold jump in R&D spending in the third quarter to 20.2 billion from 6.9 billion in Q3 2020 as Seegene worked on its assay development process and advanced new technologies for its PCR instruments and assay components. SG&A costs in the quarter rose 55 percent to 57.6 billion from 37.2 billion in the year-ago quarter.

Earlier this year, the company unveiled a new modular samples-to-answer system, marking its foray into the molecular diagnostics instrument space.

At the end of the third quarter, Seegene had cash and cash equivalents totaling 383.9 billion.