[Click eStock] iOFlow, Confident for a Reason "Accelerating Global Expansion"

[Asia Economy Reporter Lee Seon-ae] Shinhan Financial Investment highlighted the growth potential of EOPLLOW on the 8th. However, no investment opinion or target price was presented.

EOPLLOW announced on the 7th that it had signed an exclusive sales contract with an Indonesian disposable medical products company (PT. Prasasti Nusantara Sukses). This is the third exclusive sales contract following agreements with Menarini and Huons. The supply amount under this contract is $38.26 million (approximately 45 billion KRW), the expected supply period is from December 2021 to December 2026, and the supply items include ‘EOPatch’, ‘ADM’, ‘Narsha’, and ‘EOBridge’.

Researcher Dong-geon Lee of Shinhan Financial Investment stated, "Since the contract includes a minimum annual purchase quantity, full-scale sales are expected to begin in 2022," adding, "Given that Indonesia’s medical device certification regulations allow for European CE alternative certification, immediate sales are possible after product registration. Moreover, since Insulet has not yet entered the Indonesian market, a first-mover advantage is anticipated."

Expansion of EOPLLOW’s production capacity is also a key focus. With large-scale fundraising to increase production capacity, it is expected to handle supply contract volumes for Indonesia and proactively respond to product demand in other global markets such as China, the Middle East, and South America. Through remodeling and equipment investment at the Gonjiam factory, annual production capacity is expected to expand to 3 million units. Additionally, investment in contract manufacturing organization (CMO) facilities is anticipated. Currently, negotiations are underway with an Indonesian company, and if the contract is finalized, annual production capacity could expand to up to 6 million units by 2023.

EOPLLOW is judged to be progressing smoothly, starting with the domestic launch of EOPatch on March 29, followed by the full-scale start of EOPatch sales in Europe after obtaining European CE certification in September, the establishment of a joint venture with China’s Sinocare in October, and preparation for clinical trials of the detachable artificial pancreas ‘EOPatch X’ with the Korean Ministry of Food and Drug Safety. In addition to its core business, it is also preparing to accelerate obesity management, NASH new drug development, and wearable pharmaceutical business through its subsidiary Pamio.

Researcher Lee said, "Currently, discussions are underway with several global pharmaceutical companies regarding technology development and product collaboration, and pharmaceutical clinical trials based on wearable pumps are scheduled to begin in 2022," adding, "Since sales growth is expected from 2023 onward, the investment appeal remains high."