[Edaily Reporter Lee Hye-ra] On the 18th, Shinhan Investment Securities assessed that #HEM Pharma has entered a phase where it is demonstrating the potential for global business expansion as the launch of its microbiome (gut microbiota) analysis solution, “My LAB,” in Japan gains momentum.

Lee Ho-cheol, a senior researcher at Shinhan Investment Securities, stated in a report released that day, “With the official launch of My LAB in Japan in May, the company has begun its first foray into an overseas market through Amway, the world’s leading direct-selling company,” adding, “Given that initial demand has exceeded expectations, the global expansion strategy is proceeding smoothly.”
HEM Pharma has signed a contract through its Japanese subsidiary to supply Amway with approximately 100,000 MyLab test kits and services. The contract is valued at approximately 9 billion won. The researcher explained, “Pre-orders exceeded the projected annual volume, confirming demand high enough to limit purchases to two kits per person.”
MyLab is a service that provides personalized health management through gut microbiome testing. Analysts note that since the testing process typically leads to the purchase of Amway’s probiotic product, “MyLab Solution,” this structure enables the generation of additional revenue.
The scope of collaboration with Amway is also expected to expand. The analyst stated, “HEM Pharma is pursuing an OEM (original equipment manufacturer) partnership to produce Amway’s revamped probiotic products, and discussions are underway to launch these products this fall.”
Following Japan, the company is also pushing to expand into other Asian markets. It is currently reviewing new markets such as Taiwan and Thailand, with the goal of establishing local subsidiaries as early as this year and launching services there next year. It is also reported that the company is preparing to establish a local research institute in the United States.
The company is also expanding into new business areas. He explained, “HEM Pharma is laying the groundwork for new businesses through ‘MyWellnessLab,’ which analyzes health screening data, and ‘Vignal,’ a home health analysis service.”
Financial performance is also showing signs of improvement. HEM Pharma’s first-quarter revenue reached 4.94 billion won, a 40.8% increase compared to the same period last year. Although the company recorded an operating loss due to its expansion into Japan and investments in new businesses, the loss was 43% smaller than in the previous quarter.
The analyst noted, “Sales from MyLab in Japan are expected to be fully reflected starting in the second and third quarters,” adding, “Based on the results of OEM contracts and the Vignal business, the company is aiming to reach the break-even point (BEP) this year, so it is worth keeping an eye on whether its performance continues to improve.”