Medical Supply Distribution Specialist WSI Expands Scope with Medical Devices and Surgical Robots

Unable to Break 30 Billion KRW Sales Barrier with Existing Business
Expanding Business Areas into Medical Device Manufacturing and More

WSI is expanding its business scope from medical supplies distribution to surgical robot manufacturing. By strengthening its own business beyond simple distribution, it is enhancing its mid- to long-term growth drivers.

WSI was established in 2016. It imports and sells pharmaceuticals and medical devices. It trades with 300 hospitals excluding domestic tertiary institutions. It holds distribution rights and supplies products such as ▲surgical topical hemostatic agents ▲blood substitutes ▲anti-adhesion gels related to spinal surgery ▲bone hemostatic agents ▲rigid spinal endoscopes. In particular, it occupies more than 90% of the market share in specialized spinal hospitals. In 2020, it entered the KOSDAQ market through a SPAC merger.

The company's main products are pharmaceuticals such as topical hemostatic agents. Pharmaceutical sales recorded 21.7 billion KRW in 2021 and 21.3 billion KRW in 2022. As of the third quarter of this year, sales amounted to 17.4 billion KRW, a 10.6% increase compared to the same period last year. Another pillar, medical device sales, increased from 5 billion KRW last year to 5.4 billion KRW in the third quarter of this year.

The company is expanding its business. On a consolidated basis, sales were 26.3 billion KRW in 2020, 27.8 billion KRW in 2021, 27.1 billion KRW last year, and 23.1 billion KRW accumulated in the third quarter of this year, struggling to surpass 30 billion KRW in sales.

To overcome this, it is strengthening its existing business and expanding into manufacturing medical devices directly. The area the company is recently focusing on is catheters. In August, WSI officially entered the cardiovascular interventional procedure business by signing a distribution agreement with KIMAL PLC in the UK. The products WSI supplies domestically include catheters such as PICC (Peripherally Inserted Central Vein Catheter). Subsequently, it also formed a partnership with China's Shengjian Tech Group for cardiovascular interventional procedure business and is currently preparing active marketing and dealership network establishment targeting cancer treatment-related academic societies.

Recently, the Ministry of Food and Drug Safety imposed an administrative suspension of import operations for KIMAL products until February 7 next year due to non-application for GMP (Good Manufacturing Practice) certification, but the company states that there is no impact on the business. A company representative explained, "This matter is unrelated to existing business items," adding, "We were already aware of this fact when signing the KIMAL distribution agreement, and we are currently proceeding with the application process to renew GMP compliance certification." Import procedures for the products will commence after the review is completed.

The company has another promising prospect. In 2021, it established Easy Medibot, a company developing and producing surgical robots. The robot currently under development is an assistive robot for obstetrics and gynecology surgeries. A company representative said, "We are accelerating research and development aiming for approval from the Ministry of Food and Drug Safety next year," and added, "To expedite commercialization, we have decided to closely collaborate with Shengjian Tech Group for surgical robot development, commercialization, and market pioneering."