Samsung Electronics secured the No. 1 shareholder position by making an additional investment of $175 million (about 267 billion won) in the U.S. gene analysis equipment company Element Biosciences.
After its first investment in 2024, it expanded the investment size and rose to become the largest shareholder. However, Element's management control remains with the founding team.
In the industry, there is analysis that Samsung Electronics' recent healthcare investments are aligned with building a Precision Medicine value chain that connects genome analysis equipment, early cancer diagnosis, and digital health platforms. Some also see this investment as a strategic move to secure leadership in the Digital Healthcare and Precision Medicine industries.
◇Will Element shake Illumina's dominance
The industry interprets Samsung Electronics' latest investment as a strategic choice aimed at the structural limits of genome analysis technology.
Genome analysis technology has so far focused on reading DNA (deoxyribonucleic acid) sequences. But the limitation has been noted that DNA information alone is not enough to fully explain how diseases actually occur and progress. That is because, in addition to genetic information, a variety of biological factors—such as RNA (ribonucleic acid) expression, protein interactions, and changes in the cellular environment—act in combination.
"Multiomics" is drawing attention as a technology to overcome these limits. It is an approach that analyzes diverse biological information—such as RNA and proteins as well as DNA—together to interpret disease onset and biological responses in an integrated way. It is mainly used in R&D areas such as disease research and new drug development.
If the conventional approach analyzed each dataset separately and then combined them, multiomics processes multiple biological data—DNA, RNA, proteins—together within a single analytical framework. The advantage is that it can increase the precision of disease interpretation and expand the scope of analysis.
Such technological advances are also affecting the landscape of the global genome analysis market. The market has long been led by the United States' Illumina, which has effectively established itself as the standard platform.
However, the structure centered on high-priced equipment and a consumables-dependent revenue model has been cited as a cost burden factor across the industry.
Founded in 2017 in San Diego, the United States, Element Biosciences is a corporations that grew by leveraging DNA sequencing technology that has raised genome analysis accuracy to the 99.99% level.
The mid-range DNA sequencing device "AVITI," released by the company in 2022, is its flagship product challenging the Illumina-centered market. The "AVITI24," unveiled last year, targeted expansion into the multiomics realm with features that can analyze genome information and cellular changes along a time axis.
The high-throughput NGS device "VITARI," unveiled this year, is a next-generation product that can rapidly analyze large volumes of genomic data, with a focus on lowering the expense of large-scale genome analysis.
There is analysis that Element is targeting the genome analysis market by touting three competitive strengths: ▲ substitutability for the existing sequencing market ▲ reduction of analysis expense ▲ expandability to multiomics.
◇Samsung pieces together the Precision Medicine investment puzzle
Some say it is hard to see Samsung Electronics' latest investment as merely a financial investment.
Recently, Samsung has been broadening its investment scope across Precision Medicine. Samsung Electronics invested in GRAIL, a blood-based early cancer diagnosis corporations, in 2021, and last year acquired the U.S. Digital Healthcare platform corporations Xealth.
With the Element investment added, there is an assessment that investment areas related to Precision Medicine—such as genome analysis, cancer diagnosis, and digital health platforms—have expanded further.
Each corporations plays a different role. Element is a sequencing technology corporations that generates genome data, and GRAIL is a corporations that uses genome data to diagnose cancer early. Xealth provides a platform that connects hospitals and patients with Digital Healthcare services.
Some in the industry also say this investment reflects a focus on the value of genome data, which is considered a core asset in the Precision Medicine industry. That is because genome analysis is used as a foundational technology in various fields, not only for cancer diagnosis but also for new drug development, disease prediction, and personalized treatment.
Samsung already has a business base across the medical and healthcare sectors. Samsung Medison Co. runs a medical imaging equipment business, including ultrasound diagnostic devices, and Samsung Medical Center is accumulating large-scale clinical data. Samsung Electronics is securing lifestyle health data such as sleep, heart rate, and activity through the Galaxy Watch, Galaxy Ring, and Samsung Health. Samsung Biologics and Samsung Bioepis have also built business bases in biopharmaceutical production and biosimilar development.
Some in the industry interpret that, just as Samsung Electronics has grown by securing core infrastructure competitiveness in the semiconductor and display industries, it is also focusing on the strategic value of foundational technologies in the field of Precision Medicine.
An industry official said, "With the expansion of this investment, the weight has shifted more toward genome analysis technology and data-generation capabilities than the diagnostic service itself, and this is also Samsung's characteristic 'foundational technology-centered investment approach.'"
However, it appears it will take some time for the investment to bear fruit. The global genome analysis market is still led by Illumina, and multiomics remains largely in the research-and-development-centered market. The key question is whether Element can secure meaningful market share based on expense competitiveness and technological differentiation.
Roh Tae-Moon, president of Samsung Electronics, said of the investment, "Synergies will be created for the future of personalized medicine by combining Samsung Electronics' expertise in AI, medical devices, and digital health with Element's innovative genome analysis technology."