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ODM signed with Beckman Coulter
Nov 16, 2014
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The emergence of new TOCE and MuDT technologies within the past two years based on real-time PCR (developed by Seegene) is creating a stir among multinational corporations. These technologies, which have the potential to change molecular diagnosis, are responsible for a stream of enthusiastic calls from multinational companies to the small Asian venture biocompany.?
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Of the many companies calling Seegene, Beckman Coulter is by far the most enthusiastic, as demonstrated by its proactive efforts. Even aspects that looked difficult to solve were carried out with Beckman Coulter in a speedy manner, such as the signing of a global ODM contract for two human infectious diseases based on TOCE technology in less than two years. Considering the fact that most company-to-company contracts last for approximately three years, this contract was concluded relatively quickly. A closer look at the contract shows that the TOCE technology is being put to practical use almost simultaneously with its development. Furthermore, based on this current contract, it is likely another contract will be signed by June 2015. Confidence in its own technology is virtually a given for Seegene, but in the eyes of the global top five companies, it had been making its case on woefully insufficient data. Through this contract, sales for five years beginning in the fourth quarter of 2015 are predicted to amount to USD 1.5 trillion (580 machines: 68% of Seegene sales) as a conservative estimate, USD 2.7 trillion (880 machines: no. of Seegene sales) as a neutral estimate, and USD 5.3 trillion (1,500 machines: no. of Quiagen sales) as an optimistic estimate.
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In terms of hematological examination, Beckman Coulter is a leading company with the largest share of the global market. It also ranks fifth worldwide in terms of immunochemical examination and external diagnosis. Importantly, its mother company is Danaher, an American company, which has a market value of USD 60 trillion and has 252 subsidiaries and 254 production facilities in 50 countries. With Danaher’s stable distribution network, Beckman Coulter is a highly attractive opportunity for Seegene. The ODM and OEM industries are not only useful in terms of increased sales, for Seegene, on the brink of globalization, Beckman Coulter is a shortcut to becoming a world-class company. Having developed and grown through many M&Ns, Danaher has a transparent and solid corporate-format quality system. It represents the growth engine that will help Seegene navigate overseas markets. At a point Seegene when is preparing to go global, Danaher’s quality system support and ODM supply contract will guide the company in the right direction.?
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A Seegene employee in the overseas business sector stated “The contract with Beckman Coulter is important not so much for its size but for the potential for growth. For Seegene, the stable foundation it provides makes the contract with it a golden opportunity over other companies. People often say that a contract between two companies is like a marriage contract. Perhaps this is because of the preparation involved, as well as the fact that more effort is required to maintain the contract after having signed it. I am so proud of Seegene for having grown step by step through successive contracts with global companies.”
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Seegene technology is attractive for any company in the medical device industry, which is probably why companies throughout the world are so interested in it. Not long after its creation, Seegene’s TOCE technology is about to take its first steps into the US market. Through this opportunity, Seegene is planning to conduct even more ODM and OEM business with not only the US and Europe, but with other Asian countries and the Middle East as well. With high expectations for this contract as the stepping stone for the company to engage in further global growth, Seegene’s future looks even brighter.
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