"The Golden Era of Korean Medical Devices: Three Rising Dark Horses"

[Yu Jin-hee, Edaily Reporter] SEOUL, South Korea―Market attention is rising for recently listed medical device companies on Korea’s Kosdaq, spurred by speculation that Classys (214150), following Lutronic (085370), could achieve a major deal that significantly boosts its corporate value. Korean medical device firms, previously viewed as moderate-risk, moderate-return investments, are now capturing market interest with rapid growth, shifting their sector profile toward moderate-risk, high-return.

(Graphic by Mina Lee, Edaily)

◇Classys‘ Stock Surges 2,750% in Seven Years

According to industry sources, Classys, which entered the KOSDAQ market in December 2017, has seen its stock price skyrocket by 2,750%, from an initial public offering price of 2,000 KRW to 57,000 KRW as of March 6. Reports indicate that major corporations like Samsung Electronics have shown interest in Classys, further fueling expectations for potential growth.

As industry leaders demonstrate robust growth and investment value, market focus is shifting to promising newcomers that possess the key attributes of established firms& differentiated technology, strong growth indicators, and diverse overseas sales channels. Among these, aesthetic medical device makers LaserOptek and Lameditech, as well as diagnostic device firm Protia, are gaining traction.

LaserOptek, which was listed on the KOSDAQ in February 2024, is steadily working towards surpassing 40 billion KRW ($30 million) in annual revenue this year, with a target of 80 billion KRW ($60 million) by 2027. The company has shown consistent growth, increasing its revenue from 18.7 billion KRW in 2021 to 34.4 billion KRW in 2023. Despite temporary stagnation last year due to external market challenges, analysts expect a rebound in 2024.

To support its long-term expansion, LaserOptek recently established a new headquarters and production facility in Seongnam, South Korea, separating its research and manufacturing divisions for efficiency. The company’s flagship Nd:YAG-based picosecond laser device, Picolo Premium, has been upgraded with a contouring mode in its latest version, Picolo Premium S, set for release this year. With Picolo Premium already recognized in the U.S. and European markets, analysts predict a swift market adoption of its successor.

The global medical aesthetics market, including lifting treatment devices, is projected to grow from $17.8 billion in 2024 to $145.7 billion by 2030, according to market research firm Vintz Research. LaserOptek’s expansion in the U.S. is also accelerating, with its skin treatment device Palas Premium contributing over a quarter of the company’s total revenue just a year after its launch in March 2023.

(Classys)

◇Protia, Lameditech Emerging as Strong Contenders

Protia is another rising player, with expectations for double-digit revenue growth this year. Its flagship allergy diagnostic device, Protia Allergy-Q, accounts for more than 80% of its total sales. The device is the world’s most comprehensive allergy diagnostic system, capable of testing over 100 allergens in a single procedure. Protia has doubled its revenue in three years, reaching 10.5 billion KRW in 2023, a 27.8% increase from the previous year, while its operating profit surged by 812.1% to 1.4 billion KRW. The company aims to achieve 100 billion KRW in annual revenue by 2028.

Protia is diversifying its product lineup, with plans to launch the world’s first electro-capacitance-based antibiotic susceptibility testing system, Protia AST, later this year. Additionally, new autoimmune and food intolerance diagnostic devices, along with a multi-diagnosis system for equine allergies, are driving growth.

Lameditech, which debuted on KOSDAQ in June 2023, is also making waves. The company’s revenue soared by 125% year-over-year to 6.58 billion KRW in 2023, and it is expected to surpass 10 billion KRW in 2024. In the medical device industry, surpassing the 10 billion KRW revenue threshold often marks the beginning of exponential growth, enabling broader brand recognition and aggressive global expansion.

Founded in 2012, Lameditech specializes in miniaturized drug delivery technology that enhances absorption for treatments ranging from aesthetics and atopic dermatitis to dementia and cancer therapy. Its flagship products include the HandyRay laser lancet and the PuraCell skin treatment device.

A key differentiator for Lameditech is its proprietary drug delivery system, which is part of the booming $90 billion market. The company recently gained industry attention at MEDICA 2024, Europe‘s largest medical device exhibition, and secured a partnership with German laser company GME for co-developing a medical device integrating laser-based drug delivery technology. Lameditech has also entered into discussions with a global pharmaceutical firm to develop drug delivery systems for atopic dermatitis and dementia treatments.

The drug delivery market is projected to grow from $46.2 billion in 2024 to $63.4 billion by 2032, according to Fortune Business Insights. “Medical device firms that were previously undervalued due to their lack of blockbuster products are now turning into golden geese as global market entry barriers ease,” said Hong Soon-jae, CEO of BioBook. “Innovative firms like Lameditech, which hold core medical technology, deserve particular attention.”