Researchers work in a lab at the headquarters of genome sequencing company EDGC in Incheon. EDGC, a Korean genomics company. Courtesy of EDGC

By Jung Min-ho

Korean genomics company EDGC will acquire EDGC HealthCare, its subsidiary famous for the COVID-19 detection kit, DiaPlexQ, to improve finance and management efficiency.

The merger is expected to be completed on Aug. 6, an EDGC official said Wednesday.

"The merger is expected to bring about more investment into EDGC's genetic technology for predicting, detecting and treating diseases," the official told The Korea Times. "It is also expected to increase the company value and shareholders' interests."

A prognosis method, which uses gene sequencing to detect cancerous cell-bound circulating tumor DNA (ctDNA) hidden in circulating free DNA (cfDNA) in blood, is among EDGC's best-known technologies.

During the COVID-19 pandemic, EDGC HealthCare has exported its coronavirus detection kits and rapid antibody test kits, which can deliver results in just two minutes, to more than 50 countries, including the United States and Germany. The company's revenue and operating profits this year are estimated to be about 120 billion won (#97.2 million) and 25 billion won, respectively, a major leap from 41.4 billion won and 1.3 billion won in 2018.

"Thanks to EDGC's global network, EDGC HealthCare could export its coronavirus test kits to the United States and Europe," EDGC HealthCare CEO Lee Myung-hee said in a statement.

"We expect the merger to strengthen business support for test kit sales overseas."