Malaysian Genomics Resource Centre sees healthcare services as growth area

KUALA LUMPUR: Genome sequencing and analysis provider Malaysian Genomics Resource Centre Bhd (MGRC) expects earnings in its healthcare services segment, which include screening, pathology lab and diagnostic services to grow to 32% in the financial year ending June 30, 2019, from 14% currently.
Speaking to reporters after the company's 11th AGM yesterday, COO Sasha Nordin said the growth would be driven by the increasing reliance of Malaysian doctors on its screening and pathology services to diagnose and treat patients.
"What we really need to do is go to the ground, work with hospitals to run workshops and seminars for these doctors, in order to increase their awareness of new technologies and systems that are now available in Malaysia.
"In developed countries, doctors rely on the results of pathology tests for 70% of their clinical decisions. We believe the market in Malaysia has yet to reach this 70% mark," Sasha said, adding that the figure is between 45% and 50% here.
The situation, he said, leaves a great deal of room for growth in the use of various pathology tests, which would give doctors additional information to make clinical decisions.
The company's analytical services segment, including human health and plant sciences for local and foreign institutions, which currently contributes more than 80% of its net profit, is expected to remain its core business.
Sasha said the company still sees growth opportunities in its analytical services segment, given the growing demand for genomics applications in healthcare, agriculture and livestock sectors.
As of November 2015, Sasha said, the company's sales pipeline stood at RM7.4 million, with RM9 million worth of projects already in its order book.
On its expansion plans, he said the company is looking to enter the Hong Kong and Philippine market, noting it already has presence in Malaysia, Indonesia and Thailand.
"We are still trying to understand that market. It is an interesting market, because a lot of American healthcare and institutions are there. We are still looking for the right partner and distributor," he added.
Founded in 2004, MGRC provides genome sequencing, bioinformatics analyses and genetic screening services to local and foreign institutions, hospitals, clinics, doctors and allied health specialists. Its services include the sequencing and analysis of various human, animal, plant and microbial genomes.
For the first quarter ended Sept 30, 2015, MGRC's net profit jumped 82% to RM906,000, compared with RM497,000 in the previous corresponding quarter, mainly due to higher revenue from its analytical and tests services. Revenue increased 38.5% to RM3.6 million, from RM2.6 million previously.