[Edaily Reporter KIM SAE-MI ] Macrogen, Inc.(038290)is pursuing a transformation from the leading company in South Korea’s next-generation sequencing (NGS) market to a digital healthcare platform company. The company plans to expand its scope from a genomic analysis service provider to a personalized healthcare platform provider.

Sequencing Remains the Core Business… Breaking Through with Lower Unit Costs and Increased Volume

The core of Macrogen, Inc.’s new growth strategy is to secure large volumes of DNA and microbiome data. Macrogen, Inc. has set a long-term goal of accumulating 10 million sets of genetic (DNA) and microbiome data and, based on this, expanding into health management platforms and data-related businesses.

Macrogen, Inc.’s core business is still considered to be genomic analysis services. Of the 45.3 billion won in revenue for the first quarter of this year, sequencing revenue amounted to 39.9 billion won, accounting for 88% of the total. Profitability has not yet shown a clear improvement. Macrogen, Inc. recorded an operating loss of 500 million won in the first quarter of this year based on its consolidated financial statements. This is believed to be partly due to the cost burden associated with infrastructure expansion—such as the Songdo Global Genome Center—and new business initiatives.

The sequencing business is facing challenges in ensuring profitability as the unit cost of analysis continues to decline. With advancements in genomic analysis equipment technology, analysis speeds are increasing while service costs are trending downward. In response, Macrogen, Inc. states that it has secured national-level projects and established large-scale analysis infrastructure, such as the Songdo Global Genome Center, to expand its volume of work.

A Macrogen, Inc. official explained, “As new equipment is introduced and technology advances, analysis speeds are increasing and service costs are decreasing,” adding, “From a corporate perspective, we are in a situation where we must secure a large volume of work that exceeds these trends.”

The Songdo Global Genome Center is regarded as a core piece of infrastructure established by Macrogen, Inc. to analyze and process large-scale genomic data. The center is set to serve as a hub for handling national-level bio-data projects and global analysis demand. It was designed to comprehensively handle everything from genomic data generation to AI-based interpretation and clinical analysis.
Expanding

Consumer Reach Through GenTalk and TheBiome… DTC Profitability Remains a Challenge

Macrogen, Inc. is also expanding its microbiome product portfolio. Through its TheBiome brand, Macrogen offers testing services for △gut microbiota △oral microbiota △pets △infants and toddlers △and female vaginal microbiota. The integration of the GenTalk service with Samsung Health is also cited as one of the strategies to broaden consumer reach.

Macrogen, Inc. plans to provide health insight messages in the second half of this year by linking GenTalk analysis results with Samsung Health’s Life Log. This move is interpreted as an effort to increase the utility of data by connecting genomic and microbiome data to lifestyle management, going beyond the sale of direct-to-consumer (DTC) genetic testing.

However, DTC services face a structural limitation in that it is difficult to generate recurring revenue. This is because once a genetic test is performed, the results do not change significantly even with retesting, resulting in low incentives for repeat purchases. Macrogen, Inc. also views GenTalk as an entry-level service designed to increase consumer accessibility rather than to expand sales.

An entry-level service refers to an initial product designed to allow consumers to experience a product or service with a low barrier to entry, prior to undergoing high-cost, complex whole-genome analysis. In Macrogen, Inc.’s case, this category includes GenTalk, its personal genetic testing service, and TheBiome, its gut microbiome testing service.

Moving Beyond One-Time Tests to Subscription-Based Health Management… SuperGenome Also in the Works

Macrogen, Inc. is also

planning

to launch

SuperGenome

to establish a recurring revenue model. “SuperGenome” is a health management service concept that goes beyond a single DTC genetic test to integrate △ whole-genome sequencing △ disease-related testing △ somatic mutation testing △ and microbiome testing. Macrogen, Inc. is exploring ways to generate recurring revenue by expanding into a subscription-based service that includes quarterly updates and regular health information.

A Macrogen, Inc. official stated, “As far as I understand, the SuperGenome concept was inspired by the fact that while innate genes do not change and thus may be assessed with a one-time test, tests related to somatic mutations—such as those for cancer—and gut microbiome tests need to be checked periodically, much like a general health checkup,” adding, “We intend to develop this concept with that goal in mind, taking into account the regulatory environment and market conditions.”

Macrogen, Inc.’s long-term vision of securing 10 million DNA and microbiome data sets is not solely aimed at increasing the number of tests. Through services such as GenTalk and TheBiome, Macrogen plans to accumulate genomic and microbiome data and, in collaboration with Samsung Health, combine this with lifestyle data—including sleep, exercise, and diet—to provide personalized health insights.

In the long term, the company plans to use this accumulated data to enhance its services, including disease risk prediction, personalized health management, and precision medicine research. Additionally, it is exploring ways to expand into data-driven business ventures in collaboration with pharmaceutical companies, hospitals, and research institutions. For now, the focus is on accumulating data through the expansion of testing services and establishing a platform foundation.

Macrogen, Inc.’s plan is to first secure 1 million data points within the next 4 to 5 years and then gradually increase this to 10 million. However, since data acquisition by private companies involves factors such as △testing costs △consumer acquisition △consent for personal information △data storage and management costs, it is expected to be difficult to achieve this goal in the short term.