1. What Happened at HLB Panagene?

HLB Panagene reported a 45.6% decrease in sales in the first half of 2025, reaching 7.179 billion KRW compared to the same period last year. All sectors, including molecular diagnostics, materials, and nucleic acid extraction, showed sluggish performance. However, the operating loss narrowed on a consolidated basis and turned to profit on a separate basis.

2. Why These Results?

The main reason for the sales decline is the decrease in demand and increased competition in the molecular diagnostics market after the COVID-19 pandemic. The return to profitability is attributed to increased financial income and decreased financial expenses. The immunodiagnostic business is still in its early stages and has minimal contribution to sales.

3. What’s Next?

HLB Panagene is striving to secure growth engines by strengthening the competitiveness of its PNA-based molecular diagnostic technology, expanding the immunodiagnostic business, and establishing an AI-based diagnostic platform. Obtaining MDA medical device approval in Malaysia and manufacturing approval from the Ministry of Food and Drug Safety in Korea are positive signs. However, managing financial risks, such as outstanding convertible bonds, remains a key challenge.

4. What Should Investors Do?

HLB Panagene’s future presents both uncertainties and opportunities. The current investment recommendation is neutral. Investment decisions should be made after carefully monitoring the recovery of the molecular diagnostics market, the performance of the immunodiagnostic business, and management of financial risks.