LabGenomics, NGeneBio join forces for US market

Korea's two diagnostics companies, NGeneBio Co. and LabGenomics Co., signed a memorandum of understanding (MOU) on Thursday to cooperate in the field of next-generation sequencing (NGS) services.

The two companies will work together in developing NGS-based services both in the domestic and the US market.

For this, they intend to take advantage of a US Clinical Laboratory Improvement Amendments (CLIA) Lab, which LabGenomics plans to acquire. 

After taking over a CLIA, LabGenomics, together with NGeneBio, plans to develop LDT services that applied their advanced diagnostic technologies to CLIA Lab's diagnostic process.

NGeneBio will supply LabGenomics with NGS diagnostics products, bioinformatics software, and laboratory-developed test (LDT) services. It will export NGS products to the US once LabGenomics completes the acquisition of the CLIA Lab.

Meanwhile, the biggest shareholder LabGeneomics signed in September a contract to sell its managerial rights to Luha Private Equity, South Korea, at 90 billion won. Capitalizing on 94.1 billion won in cashable assets, Luha plans to promote genetic testing molecular diagnosis services and new overseas business.

Write to In-Hyuk Park at hyuk@hankyung.com