EDGC enters US procurement market with medical supplies

Eone Diagnomics Genome Center Co. (EDGC), a South Korean healthcare firm specializing in genetic analysis technology, is set to enter the US government procurement market by exporting medical devices. 

The Kosdaq-listed company said on March 29 that it has received a purchase order (PO) to supply devices to the US Department of Veterans Affairs Federal Supply Schedule Service (VA FSS), which covers all medical-related procurement contracts for the US government. EDGC won the official PO through strict verification requirements and purchasing procedures, the company said.

The healthcare firm obtained the supply qualification through System for Award Management (SAM) registration, which is essential for entering the US federal procurement market.

EDGC will make its first export delivery of 65Ⅱ-A, or TENS, which uses fine electrical stimulation through pads attached to the human body for pain relief, rehabilitation and muscle exercise. EDGC will deliver it to its US-based business partner YTS Global Group first, and YTS will supply it to the US government.

The healthcare company will first supply the medical device worth $1 million to the US government and plans to export a total 10 million units of the low-frequency stimulator during the next five to 10 years, for a total value worth more than $600 million.

The US has the world's largest procurement market, worth about $830 billion on an annual basis. It is characterized by long-term deals such as 10-year contracts. For stable supplies of the medical devices, EDGC is planning to bulk up sales by additional manufacturing of its five quantitative polymerase chain reaction (qPCR) products that have acquired FDA approval, alongside its disinfection and antibacterial products.

Write to Min-soo Han at hms@hankyung.com
Jihyun Kim edited this article.