During the first half of 2023, South Korea medical device sector emerged as the standout performer among the pharmaceutical, biotechnology, and healthcare market. This remarkable achievement resulted in substantial growth in mergers and acquisitions(M&A), accompanied by a surge in corporate value. Market capitalization of listed medical device companies surpassed that of biotech ventures, exceeding initial expectations.

According to a recent analysis by HitNews on July 2nd, there were two global acquisitions of domestic medical device firms in South Korea this year. The first involved the acquisition of Taewoong Medical by Japanese medical device company Olympus. The second saw the American medical device company Medtronic acquire EOFlow. Additionally, there were three more domestic medical device M&A cases: LabGenomics acquired by Luha Private Equity, Osstem Implant acquired by a consortium consisting of MBK Partners and Unison Capital Korea(UCK), and Lutronic acquired by Hahn & Company.

Regarding outbound M&A, where domestic companies invest in or acquire overseas companies in the United States, Europe, and other regions, there were three cases. These include I Sens's acquisition of AgaMatrix, a US-based blood glucose monitoring device company, SD Biosensor's acquisition of Mirero, a distributor of in-vitro diagnostics based in Panama, and the acquisition of Meridian Bioscience, a US-based in-vitro diagnostics device company.

Industry insiders note a notable surge in interest for "profitable" medical device companies that demonstrate strong performance and ensure stable growth. M&A remains a prominent exit model for medical device companies in the global market. The fact that domestic medical device firms are being sought after by global industry players indicates exceptional technological competitiveness and high evaluation of business growth potential.

Although not all of them have undergone M&A, various listed medical device companies have witnessed a surge in their corporate values in the first half of this year, as investors bet on their future growth potential. As of June 30th, domestic medical device companies with a market capitalization exceeding 1 billion USD include Classys (approximately $2.923 billion), Lunit (approximately $1.8054 billion), Dentium (approximately $1.6050 billion), and SD Biosensor (approximately $1.2775 billion).

Notably, digital healthcare-related listed companies have experienced remarkable stock price increases. As of June 30th, Lunit recorded a 391% increase, Vuno achieved a 355% increase, JLK Inc. saw a 359% increase, and Deepnoid marked a 102% rise compared to the end of last year. These companies are considered part of the domestic 'Big 4' medical artificial intelligence(AI) firms, with JLK Inc. listed in 2019, Vuno and Deepnoid listed in 2021, and Lunit listed in 2022.

According to another industry insider, the significant stock price increases of medical AI-related stocks this year can be attributed to the expectations of digital technologies playing a crucial role in the healthcare market. Lunit and Deepnoid experienced increased demand from individual investors, while Vuno attracted institutional investors.

Furthermore, the insider noted that due to the intense focus on bio-investments in South Korea, the interest and proportion allocated to the medical device sector have been relatively low. However, with the succession of global M&A cases and visible performance results, interest in medical device companies has grown, leading to a rise in stock prices.