News
2023.03.02
“An all-in-one healthcare company that covers the development and supply of diagnostic products, prevention and treatment solutions.”
Park Sang-tae, CEO of DxVx (Photograph = Courtesy of DxVx)
Park Sang-tae, CEO of DxVx, presented the direction the company is pursuing. DxVx aims to grow into a healthcare platform company by combining its own diagnostic technology with an infant genome analysis database of 400,000 cases.
Founded in 2001 as MG Med, DxVx transferred from KONEX to KOSDAQ in 2015. In 2017, the company renamed itself as Cancerrop. Since 2016, the company had been in continuous loss, and in 2019 stock trading was suspended after receiving a disclaimer audit opinion. However, starting from the first quarter of last year, it succeeded in turning to surplus, as Lim Chong-yoon, chairman of Coree Group, took over the largest stakeholder and focused on strengthening the organizational constitution.
The company expanded its business area, which was limited in genetic testing, to the health supplement, and it resulted in record-breaking sales. As of the third quarter of last year, the company recorded 21.7 billion won in sales and 1.5 billion won in operating profit. Its sales record has increased 2.5 times higher and finally turned to surplus with an expansion into the Chinese market. The company is expecting the all-time high record this year by using its networks in China as a stepping stone.
Recently, as DxVx received “further deliberation” from the Korea Exchange, the decision to resume trading has been delayed. The company is preparing to submit the 2022 external audit report to the Korea Exchange. The Korea Exchange will review the report with the market committee and then decide whether to resume trading. Although trading resumption has been delayed than expected, the company remains committed to executing its business plans.
DxVx plans to push forward its business in China when it completes the business license application process for establishing a Chinese subsidiary in the middle of next month. DxVx had been using Coree Group’s networks all across China, but the company is establishing its own subsidiary with a view to secure its distribution network and to maximize profitability. DxVx expects synergy between local networks in China from Beijing Hanmi, Coree China and DxVx’s Chinese subsidiary.
"We expect that the sales record of the Chinese subsidiary will exceed the head office's sales. The key figures who led Beijing Hanmi are now leading DxVx, so I believe their former experiences and networks will be leveraged through the Chinese subsidiary," Park said.
DxVx plans to steadily increase its R&D pipeline as well as its profit structure for sales. In particular, the company is searching for specialized strains with powerful immune-boosting properties. Currently, British subsidiary is conducting phase 1 clinical trials for anti-cancer vaccines, and Coree’s Italian affiliate is conducting clinical trials for diabetes and obesity treatment. DxVx is deliberating on transferring these two preclinical pipelines using microbiome to themselves when trading resume.
This year, DxVx will focus on the health supplement business. This year, DxVx plans to launch 12 microbiome products based on beneficial bacteria that help boost immunity. On top of this, DxVx will also expand to research projects that specializes in germs, diagnostic services and microbiome technology.
Park announced that they are not limiting bacteria or microbiome to any specific treatment or use, but are keeping many other options open to prepare for a new pandemic in the future. The long-term vision of DxVx is to become a "customized health management platform company" and take the lead in establishing a new paradigm as demand for highly customized services and products for individual customer increases.
"We would like to redefine the paradigm of the bio industry by expanding into industrial and consumer products," said CEO Park. According to him, the boundaries between food companies and dry food companies, cosmetics, and pharmaceutical companies are gradually collapsing. DxVx plans to grow into a platform company that provides services throughout the entire life cycle of a person who receives a genome test from birth.
Source: Edaily