[BizLeader] Ban Ho-young, CEO of Neofect, "Next Year Will Be the First Year of Performance Improvement"

[Asia Economy Reporter Hyunseok Yoo] "With the acquisition of Weber Instrument, the company's portfolio is nearing completion. We will leverage the synergy with the acquired companies to make next year the first year of performance improvement," said Ban Hoyoung, CEO of Neofect, in an interview with Asia Economy at the Pangyo headquarters.

Neofect is a company that manufactures digital rehabilitation medical devices for people suffering from motor and cognitive impairments due to stroke, dementia, and other conditions. The smart glove, well known as the 'Moon Jae-in Glove,' is also a product of this company. Founded in 2010, it entered the KOSDAQ market in 2018.

After going public, it actively pursued mergers and acquisitions (M&A). Starting with the silver care specialist company 'Long Life Green Care,' it acquired the electronic medicine development company 'Ybrain,' and recently acquired Weber Instrument, which produces electromagnetic technology-based electronic medicine and medical devices.

CEO Ban stated, "Neofect aims to grow not just as a company selling medical device products, but as a platform company providing solutions and services together. To this end, we have conducted various M&As like putting together a puzzle, and now it seems we have reached a certain level of completion."

He expects significant synergy with Weber Instrument in terms of expanding sales networks. He explained, "Neofect will utilize Weber Instrument's domestic hospital-centered sales network to boost sales, and Weber Instrument, which had no overseas sales, can leverage Neofect's overseas sales networks in the U.S. and Europe."

Weber Instrument recently received the European CE certification for its complex pain treatment device ‘Zeus Wave,’ increasing its potential for overseas expansion. He added, "In the case of China, Weber has a joint venture, so Neofect can also explore entry into the Chinese market."

Technical synergy among the acquired companies will also be expanded. Neofect, Ybrain, and Weber Instrument each possess their own technologies, and they plan to seek technical synergy by developing differentiated products from existing ones.

Based on these synergies, performance is also expected to improve next year. Neofect recorded cumulative sales of 14 billion KRW in the third quarter, a 63.37% increase compared to the same period last year. However, operating losses continued at 10.6 billion KRW during the same period. This was attributed to sluggish hospital sales and Long Life Green Care's nursing hospital business due to the COVID-19 pandemic.

CEO Ban said, "Based on the synergy, sales growth will appear next year. Weber Instrument generates about 1.5 billion KRW in annual profit, and Long Life Green Care's recent performance is improving." He continued, "Neofect's sales, which were delayed due to COVID-19, will occur next year. Next year will be the first year of turning profitable," expressing his expectations.