Pharmaceutical companies in Korea are increasingly turning to innovative medical devices such as digital therapeutics and wearable monitoring equipment as a new source of revenue.
While innovative medical device developers possess advanced technology, they often lack sales and marketing capabilities for hospitals and consumers. Pharmaceutical companies, on the other hand, have established strong sales networks with hospitals and pharmacies, positioning them for rapid sales expansion when differentiated products are added to their portfolios. As these synergies materialize in the digital healthcare sector, collaboration between innovative medical device firms and pharmaceutical companies is expected to intensify.
According to industry sources on January 4, Daewoong Pharmaceutical (069620.KS) has achieved remarkable growth after partnering with innovative medical device companies to sell digital healthcare products. The company recorded 36.3 billion won in digital healthcare revenue through the third quarter of this year, up 57.2% from the same period last year.
Since Daewoong began selling "Mobicare," a wearable ECG device developed by Seers Technology (458870.KQ), in July 2020, cumulative examinations have reached 600,000 cases. The number of hospital beds using the device grew from 840 in February to over 1,000 currently. Following Mobicare's success, Daewoong also took on sales and marketing for Seers Technology's smart bed monitoring system "Sync," achieving rapid growth. The company expects to install the system in 13,000 hospital beds nationwide by year-end and plans to launch the second-generation "All New Sync" in the first quarter of next year.
Additionally, "CartBP," a personal ring-type continuous blood pressure monitor developed by Sky Labs, was launched in September last year with Daewoong handling sales. Within one year, the device was adopted by more than 1,600 hospitals and clinics nationwide.
As Daewoong demonstrates success in innovative medical device sales, other pharmaceutical companies are strengthening their collaborations. Chong Kun Dang (185750.KS) announced on January 4 a domestic joint sales agreement with Asleep, an AI sleep analysis solution provider, for "Apnotrack," a diagnostic app for sleep apnea. Starting in January next year, the companies will jointly conduct sales and marketing to domestic hospitals and clinics.
Apnotrack is a digital diagnostic medical device that measures breathing sounds during sleep using only a smartphone, without separate devices or sensors, to screen for sleep apnea risk at an early stage. Based on test results, hospitals and clinics can quickly proceed with follow-up diagnosis and treatment decisions for high-risk patients with conditions such as obesity, diabetes, hypertension and cardiovascular disease.
"Through this partnership, we will expand our expertise in the digital medical device sector," said Kim Young-joo, CEO of Chong Kun Dang. "We will build a convergent treatment model by expanding our chronic disease treatment portfolio with IT-based solutions."
Yuhan Corporation (000100.KS) has been selling products under a domestic joint distribution agreement with medical AI company Huinno since April 2022. The flagship product is "Memo Patch," a wearable ECG monitor. The device analyzes ECG data measured for up to 14 days using AI technology to assist physicians in diagnosis. With cumulative examinations exceeding 10,000 cases at Severance Hospital alone, the product has proven its demand and utility in clinical settings. In September this year, Yuhan expanded its product lineup by signing a domestic supply agreement for Huinno's smart bed monitoring system "Memo Q."
Handok (002390.KS) co-developed and is selling "SleepQ," a digital therapeutic for insomnia, with Welt, in which it invested 3 billion won in 2021. The product has been prescribed through Severance Hospital since June last year.