Emergency Bed Shortage... Negative Pressure Hospital Room Stocks 'Surge'

Concerns Grow Over Rapid Increase in Confirmed Cases

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] As the third wave of COVID-19 intensifies with confirmed cases remaining in the 500s for two consecutive days, stocks related to negative pressure isolation rooms are showing strong performance. This appears to be due to concerns that, given the increasing number of confirmed cases, intensive care unit beds may soon be fully occupied, triggering an emergency in securing hospital beds.

According to the Korea Exchange on the 27th, Ujeong Bio, a stock related to negative pressure isolation rooms, closed at 12,900 KRW, up 12.17% (1,400 KRW) from the previous trading day. Stocks such as SY (14.74%) and Otek (4.40%) also saw significant gains.

According to the Central Disease Control Headquarters of the Korea Disease Control and Prevention Agency, as of midnight on that day, the number of domestic COVID-19 confirmed cases increased by 569 from the previous day. Although slightly lower than the 583 cases reported the day before, it marks two consecutive days with cases in the 500s. This is the first surge in about nine months since early March, when the first wave was at its peak.

The health authorities expect daily cases to continue in the range of 400 to 600 until early next month. The Central Clinical Committee on Emerging Infectious Diseases forecasted that if the current trend continues, all remaining intensive care unit beds in the metropolitan area will soon be fully occupied. The rapid increase in confirmed cases has made the shortage of hospital beds the most urgent issue to resolve.

Negative pressure isolation rooms are special isolation rooms where internal air pressure is artificially lowered to prevent pathogens from spreading outside. They allow patients to be isolated and treated separately from the outside environment and general patients to prevent the spread of COVID-19.

Currently, related companies are developing and introducing mobile negative pressure isolation rooms. Otek, a specialized manufacturer of negative pressure ambulances, has launched a container-type mobile medical negative pressure ward capable of treating severely infected patients. Ujeong Bio has introduced prefabricated isolation rooms that can be made with positive or negative pressure. Although customized, they are characterized by easy assembly by anyone. SY, a manufacturer of prefabricated sandwich panels, developed a mobile modular negative pressure ward in March of this year.

Experts say that if the current trend continues, a shortage of hospital beds will inevitably occur, leading to significant demand for related stocks, but due to high volatility, investors are advised to exercise caution. A financial investment industry official stated, "Stocks related to negative pressure isolation rooms tend to show significant gains due to their low market capitalization," adding, "Some stocks are grouped as related even if they are not engaged in the related business, so it is advisable to consider long-term growth potential when investing."