News
2023.02.13
Last year, DxVx achieved a sales surplus for the first time in 7 years. Lim Chong Yoon, President of Hanmi and the largest shareholder of DxVx, was considered responsible for the efforts to strengthen the management and the organization constitution. DxVx mentioned that it will take a leap forward through commercialization of probiotic products this year.
331% increase in sales after improving the corporate structure for a year
On the 13th, DxVx reached KRW 32.2 billion in consolidated sales and 2.5 billion won in operating profit last year, according to the Electronic Disclosure System of Financial Supervisory Service. Sales increased by 331% compared to the previous year, and operating profit turned to surplus. Remarkably, it is the first time in 7 years that DxVx recorded an operating surplus. An official of DxVx explained that “this is a consequence upon improving the corporate structure.”
After Lim became the largest shareholder in October 2021, DxVx carried out a large-scale organizational reformation. Branching out into the vaccination (Vx) business backed by its accumulated infrastructure of its diagnosis (Dx) business, it has renamed from Cancerrop to DxVx, and changed the management.
Park Sang-tae, former President of Coree, Lee Young-gu, former vice president of COREE and Kim Jang-hee, former CEO of Coree has been appointed to DxVx. Established in Hong Kong by Lim in 2008, Coree is a bio big data-based precision medicine solution provider. Lim also joined the Board of Directors as Executive Director.
Since then, the new management forged ahead with improving its performance in an effort to resume transactions. At the same time, they embarked on microbiome solutions based on its diagnostic technologies as the company’s master plan. Last year, DxVx built a one-stop business structure that integrates research, development, clinical study, production and distribution through the acquisition of Korea BioPharm, which is equipped with GMP production facilities. It also expanded its Genomic CRO (genome-based clinical trials service) to the domestic and international B2B market by leveraging its molecular diagnosis technology. They also appointed Dr. Lee Su-won, who led the research team of Mamiai (Beijing Hanmi’s flagship product) as the head of the microbiome research center.
“Commercial Use of Bacteria”
This year, DxVx is planning to give shape to its microbiome project. Lim also demonstrated his will to ‘change and transform’ DxVx. In this year’s New Year’s remark, he said “In addition to our current pipelines and products, we will strengthen our business value through research projects on bacteria, analysis service, diagnose service and microbiome technologies. […] This year’s goal is to ‘commercialize bacteria’. This will be aligned with the KPI of all affiliates as well.” He added, “We will use bacteria in any commercial use to develop an engineering technology that produces vaccines in a fast and eco-friendly way, and to help anyone in need of diagnosis, prevention and treatment services.”
Also, industry expertise and networks will be put into the production of bacteria. An official from DxVx said “Lim formerly developed and fostered children’s microbiome products (Mamiai) during his term as CEO of Beijing Hanmi. Apart from this, Coree Group’s industrial networks will also support DxVx’s transformation.
DxVx assures their competitive advantage in the microbiome industry. An official from DxVx said “We possess the molecular genome analysis technology, expertise in the discovery and development of functional microorganisms and production facilities. […] We can provide any kind of customized products by analyzing the microbiome that varies from person to person.” He continued, “We also have the ability to expand our business with bio-engineering technology that uses microorganisms as production tools and raw materials for vaccines and others.”
DxVx also aims to fuel its capabilities to resume transactions. DxVx had been suspended from trading for 4 years. It still remains to be seen whether the transaction will resume as it received “further deliberation” from the Korea Exchange last month. Korea Exchange stated that it will decide to resume the transaction based on last year’s external audit opinion.
Given that the opinion of the external auditor will be disclosed in March, the deliberation meeting should be held no sooner than the end of March. Lim recently promised that he would not sell his stake for three years after the trading resumption. Analysts say this proves his trust in improving the company’s value.
Source: Money Today