[Edaily Reporter Shin Ha-yeon ] “We have already established a foothold in the domestic market for testing harmful substances in milk, and we believe that exports are the area where revenue can grow significantly through future investment. We plan to secure certifications in advance and build out our product portfolio so that we can supply products overseas immediately whenever demand arises.”

Kim Seong-hoon, CEO of Celltrix, made these remarks regarding the company’s growth strategy following its KOSDAQ listing during an interview with E-Daily on the 20th. The company plans to expand its business into animal diagnostics and overseas markets, building on the competitive edge it has established in the domestic market for testing harmful substances in milk. Celltrix is pursuing a listing through a merger with IBKS No.25 Special Purpose Acquisition Company.

Founded in 2019, Celtrix is a company that develops and manufactures products for testing harmful residues in food and diagnostic kits for animals. Through its pet diagnostic testing brand, “Korea Vet Lab (KVL),” it also provides services to analyze specimens submitted by veterinary clinics. The technology that ties these diverse businesses together is the company’s antigen-antibody development capabilities. This involves creating antibodies that selectively bind to the target substance to detect antibiotics in food or disease-related substances in animals.

A key advantage is that the company possesses approximately 120 proprietary antibodies, which reduces the cost burden associated with external procurement and enables it to develop new test items and diagnostic products, thereby securing both profitability and business scalability. In fact, thanks to reduced costs from in-house antibody development, the company has maintained high profitability, recording an operating profit margin of 32.6% last year and 34.5% in the first half of this year.

The company also cited its diverse range of test items as a barrier to entry. The explanation provided is that it is difficult to meet the needs of customers who require testing for multiple antibiotics with products capable of testing only a limited number of items. He pointed out, “While developing antibodies is costly, once successful, the subsequent production costs drop significantly,” adding, “Companies that start by purchasing antibodies from external sources face a high cost burden.”

The company’s flagship product is a rapid test kit for detecting antibiotic residues in milk. It is used to screen milk collected from farms as it enters dairy processing plants to ensure antibiotic levels do not exceed regulatory limits. According to the company, it holds over 90% of the domestic market share for this type of rapid test kit. CEO Kim explained, “Since numerous tanker trucks arrive every day, it is difficult to conduct precise inspections of all the milk using expensive equipment,” adding, “We use the kit for screening purposes to test incoming milk within 10 minutes.”

The company’s performance is also on the rise. Last year, revenue reached 16.976 billion won and operating profit reached 5.534 billion won, representing year-over-year increases of 112.6% and 101.0%, respectively. In the first half of this year, the company recorded revenue of 10.404 billion won and an operating profit of 3.585 billion won. The annual revenue target for this year is 22.2 billion won, an increase of approximately 30.8% compared to the previous year. The company plans to expand its business, focusing on pet diagnostic testing services and food inspection, to achieve revenue of 40.5 billion won by 2030.

The business segments driving growth this year are bovine pregnancy test kits and pet diagnostic testing services. The bovine pregnancy test kit detects pregnancy-associated glycoprotein (PAG) in the blood. According to the company, its domestic market share exceeds 50%. CEO Kim explained, “If a cow’s pregnancy status is misjudged, it can lead to economic losses for farmers, such as missing the optimal timing for rebreeding,” adding, “Market response has been positive, and usage has increased significantly this year.”

In 2024, the company laid the groundwork for integrating research and development with testing services through the acquisition of Korea Vet Lab (KVL). KVL performs over 200 types of tests—including molecular diagnostics, microbiology, and hematology—on specimens sent from veterinary clinics. The company explained that it has established a virtuous cycle: while expanding the range of new test items to secure referral demand, it also utilizes specimens obtained during the testing process and on-site demand to develop new diagnostic kits.

Overseas, the company is placing its primary focus on diagnostic products for livestock. In Pakistan, the company is conducting field trials of five diagnostic kits for bovine pregnancy and diarrhea and is currently in discussions regarding exports. It is also selling some diarrhea diagnostic kits in Russia and other markets. CEO Kim stated, “Satisfaction levels were high during the field trials, and we have reached the stage of negotiating export procedures,” adding, “We have received feedback that pregnancy diagnostic kits also produced good results when applied to goats and sheep overseas.”

In the food testing sector, the company is strengthening its push into the meat market following its success with milk. To meet the needs of slaughterhouse customers, the company is expanding the range of antibiotics tested and developing a testing method to detect residues using blood samples from live livestock. The goal is to help determine whether meat is suitable for shipment before it is discarded due to a post-slaughter non-compliance ruling.

The company plans to invest the funds raised through the IPO in obtaining international certifications, expanding production capacity, antibody research and development, and in-house development of reading devices. The plan is to develop its own reading devices—currently sourced from external vendors—to meet the demand for food testing and animal diagnostics. CEO Kim emphasized, “We intend to proactively secure antibodies in preparation for the emergence of new diseases or areas where testing may become necessary in the future,” adding, “We will prepare for international certifications and product launches to seize opportunities for export expansion.”

Meanwhile, Celltrix is set to hold an extraordinary general meeting of shareholders on November 11 to seek approval for its merger with IBKS No.25 Special Purpose Acquisition Company. The merger is scheduled for December 14, and the company plans to list on the KOSDAQ market on December 29.