Dentistry company Dentis, specializing in implant-based digital dentistry, is showing strong performance. The news that all registration and verification procedures have been completed for the approval of the premium implant product ‘SQ Implant’ by the China National Medical Products Administration (NMPA) appears to be influencing the stock price.
At 10:42 AM on the 10th, Dentis was trading at 13,430 KRW, up 18.95% from the previous day.
The China NMPA approval is an essential certification process for exporting medical device products to the market. It is a hygiene approval system by the National Medical Products Administration that applies stricter standards in terms of quality and safety based on Chinese clinical data compared to the existing hygiene approval (CFDA).
Dentis had only supplied older products approved through local agents in China, but with the NMPA approval as a turning point, it is switching to direct sales under the Chinese corporation system, enabling the supply of Dentis’s latest premium implant SQ. This is expected to secure market competitiveness and enhance brand awareness.
An official stated, "We plan to ship an initial volume worth 2 million USD starting this month," and added, "At the same time, we will rapidly promote the brand launch in the Chinese market and pursue an aggressive marketing strategy for differentiated positioning."
Considering production capacity and distribution environment, Dentis aims to expand SQ implant sales in the Chinese market to over 8 million USD within this year, along with achieving 150% year-over-year growth in annual sales in the China segment. It is expected that securing production volume through the new factory, scheduled for completion next year, will further accelerate sales growth and market share expansion. Based on continuous brand awareness and market share strengthening, the company plans to achieve results in the upcoming second-year VBP bidding.
A Dentis representative said, "With significant growth expected in the Chinese market following the NMPA approval, we plan to continue active investment," and added, "Since we are entering the market after the implementation of China’s VBP policy, we will focus all efforts on rapidly increasing brand awareness and market share through a thorough localization strategy based on a deep understanding of the local market."
Jeonghyun Kim, a researcher at Kyobo Securities, explained, "We are preparing for overseas expansion through the completion of the new factory in January next year," and said, "The implant equipment scale will increase from 100 billion KRW to 350 billion KRW."
He added, "We expect to actively target overseas markets and grow to 150 billion KRW in 2024 and 200 billion KRW in 2025."
On the 28th of last month, Osstem Implant announced that it resolved to approve delisting at the shareholders’ meeting and applied for delisting to the Korea Exchange. Osstem Implant continues to grow by actively targeting overseas markets, including China.
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