News & Events

BusinessKorea

Asia’s first and only proprietary tech-based NGS target capture kit developer

Celemics develops target capture kits for next-generation sequencing (NGS) applications based on its proprietary molecular cloning technology called MSSIC (Massively Separated and Sequence-Identified Cloning). Target capture kits, which play a key role in NGS technology-based targeted sequencing, are commercially produced by only six companies in the world including Celemics.

Investment points: 1) rapid NGS market growth; 2) business/overseas expansion

The global NGS market continues to grow alongside technological advancements and sequencing cost declines. In addition to diagnostics, NGS technology is expected to be used in a wider range of applications including new drug development, microbiome, and seed development. As a result, the size of the global NGS market is projected to grow at a rapid pace from USD6.3bn in 2018 to USD31.4bn (KRW35tr) by 2026.

Steep market growth, in turn, should lead to stronger demand for target capture kits. Celemics, backed by its advanced technology and services vs. peers, will likely enjoy notable growth in market share going forward. In addition, the company’s expansion into sequencing solutions and overseas markets should pick up pacefrom 2020 with the release of its NGS solution, BTSeq (Barcode-Tagged Sequencing).

Initiate coverage with BUY and a conservative target price of KRW40,000

We initiate coverage of Celemics with buy for a target price of KRW40,000. Our target price is based on the present value of the EPS forecast of KRW1,239 for 2022 (reflecting expectations for improvement in operating margins to peer average levels backed by overseas and BTSeq sales) and a target PER of 37.9x (15% discount to the PER average of peers).
On the first day of listing, Celemics shares gained just 29% vs. the IPO price.

However, we believe Celemics sets itself apart from other listed domestic NGS companies, as: 1) one of the six companies in the world that have succeeded in the commercialization of target capture kits
for NGS applications; and 2) a company capable of expanding beyond the domestic market to overseas markets for faster earnings growth.

Recently-listed US peer Twist Bioscience is currently trading at a market cap of USD3bn (roughly KRW3.6tr),even with the company’s target capture kit-related sales standing at just KRW25.3bn as of 2019.
Considering the upbeat earnings outlook, Celemics shares appear excessively undervalued at current price levels.

List

PR Newswire

Celemics Expedites Target Enrichment NGS Data Insights by Partnering With BlueBee on a Global Genomics Data Solution

Celemics, provider of NGS target enrichment kits and innovative sequencing platforms, announced today the release of a comprehensive NGS target enrichment workflow for clinical and translational research applications.

To serve as an end-to-end workflow with integrated genomic data analysis, Celemics partnered with BlueBee, an industrial-grade and highly configurable data platform provider, to develop a bioinformatics solution tailored 

for their assay and end-user experience. 

Collaborative efforts between these two industry leaders produced the Celemics web solution, offering a new level of accessibility to users of target enrichment NGS assays.

The Celemics web solution will act as a springboard to propel research towards precision medicine and provide Celemics with an extensible, highly efficient and scalable data strategy poised for growth. 

The Celemics web solution is a turnkey analytics option, transforming raw data into actionable results as part of the Celemics NGS target enrichment kit portfolio. 

“Data analysis is a critical workflow area with potential for streamlining,” says Dr. Hyoki Kim, CEO Celemics. “We chose BlueBee to address the data analysis bottleneck for our customers with a platform that fits precisely with our assay.

The Celemics web solution standardizes the digital end of the workflow, is high-performance, and provides ease of use. This strategic product extension is directly in line with our company mission of accelerating precision medicine, 

which we are thrilled to make tangible for a global market,” Dr. Kim adds.

Leveraging BlueBee’s Genomics Platform, Celemics is able to serve an expanding global market with clinical-grade data compliance and guaranteed data residency for customers in Europe, Asia, and beyond. 

The administrator features of the platform ensure that Celemics remains in complete control of their pipeline and operations. The streamlined user interface enables end-users with any level of expertise to analyze, interpret, 

and return actionable results from their sequencing workflow. Celemics end-users may also work collaboratively, providing secure, permissioned, and audited access of project data and analyses.

“We are honored to serve Celemics,” says Hans Cobben, CEO of BlueBee. “The BlueBee Genomics Platform, configured for the Celemics data workflow, will streamline data analysis through insight generation for target enrichment applications, 

and support market expansion for Celemics. Partnerships like this that bridge the gap between wet-lab and data workflows, are critical to the pursuit of precision medicine,” Cobben adds.

List