L&K Biomed, Plans to Establish U.S. Branch Office

[Asia Economy Reporter Hyungsoo Park] L&K Biomed announced on the 21st that it has established a branch office in the United States and will resume sales in the Korean market.

L&K Biomed explained that it will directly enter the US and Korean markets to start sales for a 'second leap.' Along with pioneering new markets, the company plans to stand tall once again with a renewed determination.

Earlier, in early last year, the company stopped direct sales in the relatively small Korean market to focus on developing expandable cages. It pursued a strategy to maximize profits by concentrating on exports to the United States.

Due to rapidly changing external circumstances such as the spread of COVID-19, the company judged that achieving the targeted sales revenue under the current conditions would be difficult. To increase sales, it decided to re-enter the domestic market. It plans to directly engage in sales within the US market, which had previously relied on the US sales corporation, Aegis Spine.

The main products L&K Biomed intends to sell are the Expandable Lateral Lumbar Interbody Fusion Cage and the Expandable ATP Lumbar Interbody Fusion Cage. Price negotiations with the Health Insurance Review & Assessment Service are currently underway, with a target launch in the third quarter.

By the third quarter, the US branch office will be finalized, and a sales organization within the US will be established. L&K Biomed's US branch will seek sales strategies focusing on regions not covered by Aegis Spine's sales network. It is also expected to handle negotiations for contracts with global companies.

The US branch will be converted into a corporation by the first half of next year. The corporation will oversee sales within the US and actively conduct marketing for new markets to be developed in Japan, Europe, and other regions.

An L&K Biomed official stated, "Until last year, we judged that domestic doctors had little interest in the Expandable Lateral Lumbar Interbody Fusion Cage and the Expandable ATP Lumbar Interbody Fusion Cage," adding, "However, after prior consultations with many university hospital doctors regarding the domestic launch, the response was surprisingly enthusiastic."

He continued, "We expect sales to surge not only in US Veterans Affairs hospitals but also directly in the Korean and US markets," and said, "We plan to increase the factory operation rate to 100% starting next month."

This content was produced with the assistance of AI translation services.