Neofect Acquires Weber Instrument, a Specialist in Electronic Medicine... "Expanding Overseas Sales Channels"

[Asia Economy Reporter Hyunseok Yoo] NeoFect, a specialized company in innovative medical solutions, announced on the 16th that it has acquired a 51% stake in Weber Instrument, a company specializing in electronic medicine and medical devices based on magnetic field technology. The two companies plan to strengthen their overseas competitiveness by utilizing their overseas sales networks and expand their product portfolio with verified products.

Yesterday, NeoFect disclosed that it had additionally acquired a 41% stake in Weber Instrument for 3.6 billion KRW. It also decided on a third-party allotment paid-in capital increase worth 1 billion KRW targeting Weber Instrument CEO Seonghee Mo. Including the 10% stake acquired early in September, NeoFect has secured a total of 51% of Weber Instrument’s shares and management rights.

Founded in 2006, Weber Instrument specializes in the development and production of physical therapy and rehabilitation pain treatment devices such as the complex pain treatment system ‘ZEUS WAVE’ and the magnetic field therapy device ‘TESLA-3000’. It has the same technology and product lineup as Remed, a domestic electronic medicine listed company, including TMS (Transcranial Magnetic Stimulation) and ESWT (Extracorporeal Shock Wave Therapy).

Weber Instrument has been recognized for its product quality in domestic rehabilitation medicine and orthopedic hospitals, recording sales of 3.2 billion KRW, operating profit of 400 million KRW, and net profit of 400 million KRW in 2018. Last year, it showed rapid growth with sales of 4.9 billion KRW, operating profit of 1.4 billion KRW, and net profit of 1.1 billion KRW.

To target the rapidly growing Chinese pain and rehabilitation market, Weber Instrument established a joint venture with Beijing Huaguang Botai Technology Co., Ltd. to handle equipment exports and manufacturing item licensing. It is currently preparing for CE certification with the goal of entering the European market next year.

NeoFect plans to sell its rehabilitation medical devices, rehabilitation platforms, and electronic medicine products such as migraine and depression treatment devices from its affiliate Ybrain in the Chinese market through Weber Instrument’s Chinese sales network. The product lineup of Weber Instrument, which has received favorable reviews in the domestic market, is also planned to be sold in the US, Europe, and other regions by leveraging NeoFect’s overseas network and sales expertise, expecting additional revenue growth.

A NeoFect official stated, “Weber Instrument possesses TMS technology, an electronic medicine technology utilizing magnetic fields, which will create highly complementary business synergy with Ybrain, which has an electronic medicine platform based on TDCS (Transcranial Direct Current Stimulation). We will build a product lineup needed in fields such as rehabilitation medicine, orthopedics, psychiatry, and neurology through a highly complete electronic medicine platform technology.”

He added, “Weber Instrument, which achieved 4.9 billion KRW in domestic sales last year, has already secured a stable domestic market, and from next year, it will significantly increase overseas sales with NeoFect. We also plan to maximize synergy with affiliates such as Ybrain and pursue a listing in the future.”

Furthermore, he expressed, “This acquisition will also advance NeoFect’s break-even point (BEP). Through joint development of new products combining NeoFect’s artificial intelligence technology and strengthening overseas market competitiveness by utilizing the overseas sales infrastructure of both companies, we will leap forward as a leading global medical solutions company representing Korea.”