[News Inside Companies] '3 Trillion Won Valuation' Medit, a Native Medical Device Company Founded by an MIT PhD

Medit company logo / Photo by Medit website capture

GS Group is set to acquire 'Medit,' a specialized manufacturer of medical 3D oral scanners. The oral scanner developed by Medit is a device that converts the internal structure of a patient's mouth into 3D data, an essential tool for complex oral treatments. Recognized for its value in the market, Medit has been recording a steep annual sales growth rate of more than double.

Medit is a purely domestic company that has risen to second place in the global 3D oral scanner market. It was founded in 2000 by Professor Jang Min-ho of Korea University’s Department of Mechanical Engineering, who holds a Ph.D. from the Massachusetts Institute of Technology (MIT) in the United States.

After earning his degree, Professor Jang worked at the Korea Advanced Institute of Science and Technology (KAIST) from 1996, researching 3D scanning and printing technologies. He founded Medit in 2000 but stepped away from management to return to academia when he was appointed a professor at Korea University in 2009. He remains the second-largest shareholder of Medit but is known not to be involved in its management.

The 3D oral scanner market targeted by Medit has shown gradual growth since the 2000s. Previously, during implant treatments, the shape of a patient’s teeth was molded using various materials to create a model, which was then sent to a specialized dental laboratory. This process inevitably took a long time and incurred high costs.

However, oral scanners use imaging equipment to convert the inside of the mouth into 3D data and can immediately transmit it to the dental lab. This has innovatively reduced the complexity and cost of treatment. Medit made its mark in the global market by launching the 'i500' 3D oral scanner in 2018.

The i500 attracted attention for its differentiated high performance compared to existing oral scanners. Building on the success of the i500, its successor, the i700, received the prestigious '2021 Cellerant Best of Class Technology Award' in North America, recognizing its technological excellence.

Medit's main product i700 3D oral scanner / Photo by Medit official website capture

Sales also surged dramatically. Last year, annual sales reached 190.6 billion KRW, earning the company the $100 million export tower award at the '58th Trade Day' ceremony. This represents more than a sixfold growth in just three years since recording 32.9 billion KRW in 2018.

Currently, Medit employs about 100 R&D specialists. The company’s affiliated research institute received the Jang Young-sil Corporate Innovation Award in 2016, given to innovative companies. In addition to scanner products, Medit is also promoting its own services, such as building 'Medit Link,' a platform that facilitates collaboration between dental clinics and dental laboratories.

The oral scanner market also has high growth potential going forward. According to global market research firm Bizwit Research & Consulting, the oral scanner market size reached $1.6 billion in 2020 and is expected to grow at an annual rate of over 10% through 2027. Furthermore, the Asia-Pacific region, including Korea, remains a blue ocean with an oral scanner penetration rate of only 10%.

Meanwhile, GS has formed a consortium with the private equity fund (PEF) 'The Carlyle Group' and submitted a bid application for Medit’s shares on the 24th. The acquisition amount proposed by the consortium is reported to be in the 3 trillion KRW range. Another global PEF, Kohlberg Kravis Roberts (KKR), is also participating in the main bidding process.

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