[INTERVIEW] Embracing routine PCR test is key to preventing next virus: Seegene CEO

This is the third in a series of interviews with senior executives of Korea's promising biotechnology companies to search for key elements of a bio-policy framework as the new government looks to promote the bio industry. _ ED.

Company 'very near' rolling out monkeypox virus test kits

By Kim Yoo-chul

It's the middle of June and there is a chance that the country's new COVID-19 cases will surge again because of a rise in Omicron sub-variants currently being detected in the U.S. and Europe.

The U.S. recently lifted its mandatory COVID testing for overseas travelers arriving by plane, which means that visitors no longer need to show negative test results or proof of recovery to enter the country. While the move is based on a high vaccination rate and widespread immunity, U.S. officials say testing requirements could return at some point.

In Korea, the number of deaths came down to a nine-month low, according to data provided by the Korea Disease Control and Prevention Agency (KDCA), even though the confirmed number of COVID cases bounced back. Earlier efforts by the government to implement organized strategies, including quick diagnostic testing, strengthened social distancing and wearing masks nationwide to reduce the fatality rate from COVID, have been effective.

While it's fair to say that hospitalizations have remained relatively low during the current wave, some disease experts said the unpredictability of the virus could lead to a resurgence in infections this summer. Already, the country's health authorities said they will put monkeypox patients under quarantine because of rising concerns over the quick spread of the virus around the world.

"Because of eased restriction rules and the influx of new variants, there is a possibility that the country will see an increased number of COVID-confirmed cases," KDCA spokesman Ko Jae-young said.

Seegene Chief Executive Chun Jong-yoon poses at the company's head office in Songpa District, southeastern Seoul. Courtesy of Seegene

Under these circumstances, Seegene, a Kosdaq-listed biotechnology company, which is also the leader in the production of test kits to identify various infectious diseases, aims to recapture the glory it enjoyed during the "COVID peak." Before the outbreak of COVID-19, Seegene was not well known. However, annual sales surged ten-fold to $1.2 billion, due to the rapid spread of COVID infections.

Its Chief Executive Officer Chun Jong-yoon said the COVID-19 pandemic was an opportunity that let the public learn about PCR tests, how it works and why it matters.

"By recalling memories over the last two years, the pandemic awakened in people's censoriousness the significance of PCR tests as the public doesn't know, I think, that PCR tests have been applicable in terms of detecting various diseases before the pandemic. Now, it's the right time to embed PCR tests into our routines," the CEO said in a recent interview.

Seegene's in-house and flagship Allplex 2019-nCoV-Assay kits were approved for commercial use by the country's health authorities in February 2020. Five days before Korea's authorization for emergency use of this product, Seegene received the CE-IVD mark from the EU.

The top executive said wearing masks has been useful in protecting against COVID-19 and influenza. "But wearing masks is no longer required in a lot of places. As life is returning to normal, we can't rule out the possibility of the influx of the flu, respiratory viruses and even the resurgence of COVID-19, all at once, which could have grave consequences on citizens. Globally, lines are blurring between diseases and that means respiratory diseases, for example, could occur in the winter and summer seasons. The Monkeypox virus was first reported in Africa. However, it's been advancing, globally. I am confident the only way to protect against future pandemics is PCR testing," according to the chief executive, who added that people have no huge physiological barriers to getting tested.

Regarding the details of its plans in promoting the "PCR test into our routine" campaign, which the company also dubbed as "In-life PCR campaign," Chun said Seegene plans to collaborate with hospitals and labs to test people at schools, churches, kindergartens and senior healthcare clinics for the early detection of diseases. Plus, the top executive said his company plans to significantly slash the cost of the test in an effort to be more accessible to people wishing to be tested.

"We are on track to let Seegene's domestic and overseas sales offices advance talks with hospitals and labs in an effort to provide affordable PCR tests that would cost as little as $12 from today's price of up to $100. PCR test's affordability will increase if Seegene lessens the cost burden. We are also ready to help those interested in joining the campaign by providing them with PCR equipment and other types of support but upon need," Chun said, adding that Seegene is in discussions with hospitals and institutions in Europe, Asia and the Middle East. "Seegene is ready to share technology expertise with countries and cities if they want to join the campaign."

According to the top company executive, Seegene is the only firm to apply "3 Ct" technology, allowing laboratories to test lots of viruses all at once. He said this technology will help the industry cut its huge reliance on Taqman-based PCR test technology which was introduced in the early 1990s.

More investment in US, M&A plans

As seen by its amazing corporate growth in terms of revenue over the last two years, Seegene's stock price once soared on the tech-savvy Kosdaq exchange thanks to a sharp spike in demand for testing kits in Asia, Europe and the United States because these countries had been grappling with shortages.

But data given by the Korea Exchange (KRX), the country's main bourse operator, showed Seegene shares were being traded in the low 40,000 won range because governments have a chance to classify COVID-19 from being a pandemic to an endemic, which means that the disease is still around but that it's at a level that is not causing huge disruptions in daily lives.

A health worker gets a swab sample from a man to test for COVID-19 at a swab collection site in Beijing, June 14. AFP-Yonhap

Chun said Seegene is trying to recapture the momentum it had during the mid-2020 peak when institutional investors and retail investors hailed its flagship products as the most powerful growth drivers by investing more in the United States and eyeing mergers and acquisitions (M&As).

"Seegene plans to establish a manufacturing site in the United States and to invest in research projects, production, quality, clinical test and projects subject to the government's approval," the top executive said adding that the company is specifically interested in striking M&As in the area of molecular diagnostics. Seegene named Richard S. Creager as the chief executive of its U.S. business.

Regarding strategies to respond to the outbreak of the monkeypox virus, Chun said Seegene is "very near" developing test kits to detect the monkeypox virus for research only.

"We will soon release monkeypox virus test kits. Unlike RNA-based coronavirus, which mutates and brings various variants, monkeypox is a DNA virus, which is less prone to mutation compared to an RNA-based virus. Although the recent spread of monkeypox cases is alarming, the virus is far less contagious than COVID-19 and treatments are available. If an exact detection process is started, we don't think monkeypox will result in severe impacts. This is why we need routine PCR testing."