[Click eStock] "Rimed, Supply Contract Relay... Only Price Increase Remains"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities evaluated on the 1st that it is a time to pay attention to Remed as supply contracts are being made across all products.

In October, Remed signed a supply contract worth 23.4 billion KRW for ZTone plus (aesthetic) with Zimmer in Germany. On the 29th, it also signed contracts with dealerships based in northern, eastern, and southern China. China is expected to have a large contract scale covering all sectors including 'TMS', 'NMS', and aesthetic devices.

Researcher Juwon Ahn of Yuanta Securities said, "Remed is the domestic leader in electronic medicine, possessing products in various fields from brain diseases to neuralgia and beauty, and is receiving love calls from overseas companies," adding, "Starting with the resumption of supply of the aesthetic device CoolTone in September, supply for new devices is being actively carried out, proving Remed's product competitiveness."

Electronic medicine is an electronic device that treats diseases through electrical signals generated in the brain and nerve cells, and recently it has been attracting attention as a new treatment field along with digital therapeutics. Many domestic and international companies are developing electronic medicine in various fields. GSK, which first introduced the concept of electronic medicine, plans to launch an electronic medicine for rheumatoid arthritis in 2023 through its subsidiary Galvani. Other global pharmaceutical companies are also developing treatments for obesity, sleep apnea, and more. In Korea, electronic medicine for treating depression was first approved by the Ministry of Food and Drug Safety and released to the market in March this year.

Researcher Ahn said, "Electronic medicine is expected to continue growing as it can stimulate the nervous system to treat various diseases," and forecasted, "The market size, which was 17.2 billion USD in 2016, is expected to grow to 38 billion USD by 2026."

It is evaluated that it is a time when expectations for performance can be sufficiently raised until next year. Remed's performance next year is expected to increase by 40.3% in sales to 30.3 billion KRW and by 116.7% in operating profit to 7.8 billion KRW compared to the previous year. The 2022 performance figures do not reflect the resumption of CoolTone supply and recent supply contracts at all, so the growth rate is expected to be much higher.

Researcher Juwon Ahn said, "Remed is the only listed electronic medicine company in Korea and was considered a promising company when it went public in 2019 by supplying aesthetic equipment to global customers," adding, "As results that were not shown due to COVID-19 and internal changes in customers are now appearing, it is judged to be a time to pay attention again."

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