[Featured Stock] Osteonic Sold at Twice the Price in the US... Exclusive Supply Deal with the World's 2nd Largest Medical Company

Osteonic is showing strong performance. The news that it received 510(k) approval from the U.S. Food and Drug Administration (FDA) last month for 10 types of sports medicine products appears to be influencing its stock price. Jaeyoon Han, a researcher at KB Securities, explained, "The significance of the FDA approval lies in the fact that Osteonic previously signed an exclusive OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) contract with Zimmer Biomet." He added, "It does not simply mean Osteonic's entry into the U.S. market, but the key point is that from the first year of entering the U.S., it will utilize the distribution network of the world's second-largest medical device company."

Han analyzed, "This is a core factor that increases the likelihood of success in the U.S. market," and "Osteonic is indirectly proving the competitiveness of its products through high growth in existing distribution channels." Furthermore, he said, "It is positive that both product competitiveness and distribution networks are already in place," and predicted, "With the occurrence of U.S. sales to Zimmer, the corporate value will also be re-evaluated."

On the afternoon of the 14th, Osteonic was trading at 8,120 KRW, up 17.68%.

The global second-largest medical device company Zimmer Biomet recorded sales of $7 billion (10.2347 trillion KRW) in 2023. It has overseas subsidiaries in 25 countries and operates in 100 countries. Zimmer Biomet disclosed on its website that it plans to commercialize Osteonic products in the first quarter of this year. Sports medicine devices are medical instruments used in surgeries to fix ligament tissue to bones when ligaments are damaged or torn.

The selling price in the U.S. is known to be about twice that of the domestic price. Once sports medicine products begin to be sold in the U.S., both scale expansion and profitability are expected to improve.

Jaeyoon Han of KB Securities stated, "Since overseas prices are higher than domestic prices, growth in scale will be accompanied by improved profitability," and "This year, the company is expected to achieve its best-ever performance."

He continued, "It is expected to receive approval in China this year," and "The approval process is underway." He emphasized, "Since most receive final results within three years, results should be confirmed in the first half of this year," and added, "Based on clear product competitiveness, the representative product group, which is rapidly growing in existing channels, will be supplied to China."