ACE Market’s Malaysian Genomics Resource Centre Bhd (Malaysian Genomics) saw its fourth quarter revenue grow 57 percent to RM2.91 million, following its consolidation of its now wholly-owned subsidiary MPath Sdn Bhd.
Net profit increased to RM335,000 for the fourth quarter ended June 30 2017 compared to the corresponding quarter last year, driven by a gain from acquiring a further 50 percent stake in MPath Sdn Bhd. MPath owns the country’s fourth largest independent chain of pathology laboratories, Clinipath (Malaysia) Sdn Bhd.
Malaysian Genomics maintained profitability for the full year, posting a net profit of RM589,000 for the 12 months ended 30 June 2017. Revenue for the year was RM9.87 million, 5 percent below the previous year’s revenue.
The genetic testing and bioinformatics group has been expanding into healthcare services since 2013, as part of its initiative to add new income streams to its earnings base of analytical services. With its roots in genome sequencing and analysis in agriculture and healthcare, Malaysian Genomics has expanded into developing its own genetic screening tests, including its pharmacogenetics test Dtect PGx, and into pathology services through Clinipath.
Clinipath owns 19 labs across Malaysia and offers a comprehensive range of 1,300 medical diagnostic and genetic screening tests. These tests are essential to modern healthcare, as doctors require them to diagnose, treat and monitor patients.
“We are currently the only opportunity for investors to directly participate in the pathology segment in Malaysia’s healthcare services sector. The acquisition of 100% interest in Clinipath, a subsidiary of MPath, is part of our long-term plan to migrate to Bursa Malaysia’s Main Market,” said Sasha Nordin, Chief Operating Officer, Malaysian Genomics.
“We see pathology services in Malaysia growing at 10 percent a year, in a segment of healthcare services which has an estimated private sector revenue of over RM700 million a year. This can only grow in the future based on the expanding population and increasing coverage of corporate insurance for employees’ medical needs,” he added. This acquisition provides Malaysian Genomics with a regular, recurring revenue stream, whereas, previously its revenue was project-based and, hence, variable.