[Click eStock] "JLKE, Domestic Price 'Dozens of Times Larger' US Market Entry Effects Begin in Earnest"

On the 10th, KB Securities evaluated that JLK, Korea's first listed medical AI company, is actively entering the U.S. market where stroke AI solution fees are tens of times higher than in Korea, and that JLK will become an attractive cash cow.

Kim Hye-min, a researcher at KB Securities, stated in a report on the same day, "JLK's solution consists of 11 multi-step models that cover the entire stroke care cycle, among which JLK-DWI has already secured non-reimbursed fees," adding, "The remaining 10 stroke solutions can also apply for non-reimbursed fees through new medical technology assessments and the integrated review system for innovative medical devices, so the multi-step ON buttons are expected to be gradually activated."

KB Securities made a positive forecast for JLK, stating that in addition to the non-reimbursed prescription business under the National Health Insurance, additional cash cows will be established such as the subscription-based ▲packaging series models and ▲stroke and dementia solutions partnered with health screening centers.

They also identified the U.S. market entry as a key investment point, noting that starting with JLK-LVO, which applied for FDA approval in May, a total of five products will be submitted this year, and once some products receive approval, sales in the U.S. are expected to gradually occur.

Researcher Kim said, "The reason why JLK's U.S. sales are anticipated is due to the difference in medical fees between Korea and the U.S.," and judged that "the company will carry out effective sales and marketing activities by utilizing joint ventures with local hospitals and overseas partners in the U.S."

In particular, mentioning that global stroke AI competitors Viz AI and Rapid AI have leveraged U.S. insurance fees to generate sales around 100 billion KRW and raise their corporate values to between 1 trillion and 1.7 trillion KRW, he projected, "Currently, the domestic fee is only 18,100 KRW per case, but if entering the U.S. market where insurance fees are set at $1,000 (about 1.37 million KRW) to $1,450 (about 1.98 million KRW), JLK will have profitability at least 77 times higher."

Meanwhile, JLK is expected to achieve substantial sales growth in the second half of the year as the adoption of AI-based stroke diagnosis programs increases in major domestic hospitals and the U.S. FDA approval process is pursued.

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