[Featured Stock] Biol, Captivating the US with Unique Technology, Expands into China... Growth Takes Flight

Biol is showing strong performance. The news that it has obtained approval for a skin beauty medical device from the Chinese government, creating an opportunity to increase local export volumes, appears to be influencing its stock price.

As of 11:13 AM on the 25th, Biol was trading at 10,530 KRW, up 1,190 KRW (12.74%) compared to the previous trading day.

According to Biol, the skin beauty medical device 'SilfirmX' received sales approval from the National Medical Products Administration (NMPA) of China. The NMPA is the regulatory and supervisory agency for medical devices in China, functioning similarly to the Ministry of Food and Drug Safety in South Korea. Imported medical devices, cosmetics, infant formula, health foods, foods for special medical purposes, pharmaceuticals and pharmaceutical raw materials, pharmaceutical active ingredients, and pharmaceutical packaging materials in China can only be sold after receiving approval from the NMPA.

Seongho Kim, a researcher at Hana Securities, stated, “Biol obtained NMPA approval for its main equipment, ‘SilfirmX,’ on the 22nd. Sales of beauty device equipment destined for China are expected to begin in earnest from the second quarter.”

Biol signed a supply contract worth 18 billion KRW over five years related to SilfirmX with China’s Xihuan Pharmaceutical Group in 2022, and the related sales are expected to be reflected in performance starting from the second quarter of this year.

He also explained, “In March last year, Biol filed ITC lawsuits against 10 domestic and international companies regarding patent infringement of microneedle RF technology, and currently has reached settlements with seven companies, including Iruda and Lutronic. The fact that Biol has reached mid-term settlements with seven companies sufficiently proves its technological moat.”

Considering that Biol’s patent is valid until 2036, it is judged that the company will continue to expand its market share in the North American market without technical issues in the future.

He added, “The key points to watch for Biol this year are expansion into new countries including China and Brazil, and momentum from new product launches. Entry into the Brazilian market began with the certification of SilfirmX at the end of last year, and shipment volumes are expected to ramp up significantly from the second half of this year.”

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