LabGenomics shares hit 2-month low on reports about COVID-19 test kits

Labgenomics

22/09/2020 04:38

SEOUL, Sept 22 (Reuters) - Shares in South Korean biomedical
firm LabGenomics Co Ltd  084650.KQ  fell to a two-month low on
Tuesday, after media reports that said a U.S. lab had stopped
using the company's COVID-19 test kits due to reliability
concerns.
    The Baltimore Sun newspaper reported on Friday that
LabGenomics test kits imported by the state of Maryland had
returned a spate of false positive results to nursing homes. The
report was picked up by South Korean media on Tuesday.
    LabGenomics in a statement on Tuesday described the reports
as erroneous and based on results from tests by a Maryland
facility to see if the COVID-19 kits could detect influenza
viruses. A company official said the exported test kits were
only designed to detect COVID-19 and could not detect the flu. 
    The LabGenomics statement said this had been confirmed by
Maryland authorities. Reuters was not able to reach a
spokesperson for the Maryland government outside of business
hours.  
    Maryland Governor Larry Hogan and the University of Maryland
sent statements to South Korea's foreign ministry saying that
the tests were fine and being used, online media Edaily reported
on Tuesday, citing LabGenomics.
    In response to queries, South Korea's foreign ministry said
Maryland authorities reported that the diagnostic kit was being
used normally while the University of Maryland also elaborated
that it approved the kit as a satisfactory diagnostic kit.
    LabGenomics shares fell as much as 16% before paring losses
to trade 3.5% lower, compared with the wider KOSPI's  .KS11 
1.7% fall.

 (Reporting by Joyce Lee; Editing by Sam Holmes)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))