Gencurix suspends breast cancer testing business after test deemed 'research-stage'

Gencurix is suspending its domestic testing services for GenesWell BCT, a breast cancer prognostic test.

Gencurix disclosed in a material event report submitted to the Financial Services Commission and Korea Exchange on the 15th that it would suspend its domestic testing services for GenesWell BCT.

The suspension affects 5.88061 billion won in revenue, equivalent to 77.91% of the company's total revenue of 7.54821 billion won last year.

The company said domestic testing services were restricted and suspended after the National Evidence-based Healthcare Collaborating Agency (NECA) notified it, following a new health technology assessment, that GenesWell BCT was a research-stage medical technology. The notification came as the period for using the technology under the innovative medical technology program expired.

The suspension takes effect today. The board resolution date was the 14th, the day before the company received an official letter from NECA.

Gencurix said it had completed its review of the laws and assessment materials related to the notification of the assessment results, and on the 14th filed an objection and a request to suspend enforcement, as well as a lawsuit seeking to overturn the disposition notifying it of the assessment results.

The company plans to seek a suspension of enforcement to continue or resume domestic testing services early until a ruling in the main lawsuit is issued.

Gencurix believes that if its request to suspend enforcement is granted, it can continue or resume domestic testing services early until a decision on the merits, substantially mitigating the impact on its business and revenue.

This disclosure is the company's definitive response to a Korea Exchange inquiry issued on the 14th. The company added that it would file an amended disclosure once important matters that could affect investment decisions, such as a court decision or consultations with relevant agencies, are finalized.