[Click eStock] "Selvas AI, Steps Toward Becoming a Medical AI Company"

On the 18th, Hana Securities analyzed in a Not Rated report that Selvas AI's new business, 'Doctor Voice Recognition AI,' will become a growth axis through product advancement and expansion of applicable medical departments.

One of Selvas AI's main STT (Speech to Text) products, 'Selvy Medivoice,' is software that converts voice into documents by voice reading of doctors' medical consultations, chart analysis, and examination opinions. Through AI deep learning of medical terminology, it achieves a voice recognition rate of about 98%. From the hospital's perspective, it enables cost reduction through workforce replacement by inputting reading documents more than three times faster than shorthand, and maximizes work efficiency by increasing the volume of readings.

Since last August, advanced work such as adding Voice Typing functionality has been underway. In November last year, Selvy Medivoice was supplied to the Nuclear Medicine Department of Gangbuk Samsung Hospital, expanding the applicable medical departments beyond the existing focus on radiology. In particular, an MOU was signed with Seoul Samsung Hospital for the 'Smart Hospital Commercialization through AI Voice Recognition-based Medical Innovation,' and an EMR (Electronic Medical Record) capable of medical records by department is being developed. It is expected to start with the psychiatry and internal medicine departments and sequentially expand to other departments.

Selvas AI is collaborating with its subsidiary Mediana, which produces medical device hardware, to develop software for Patient Monitor Devices (PMD) used in general examination rooms, operating rooms, and intensive care units.

PMD helps diagnose and treat patients based on biosignal measurement technology. It is estimated to be a global market exceeding 130 trillion KRW by 2033. PMD necessarily uses CMS (Central Monitoring System), a centralized monitoring software that provides real-time biological information. Currently, hospitals generally integrate PMD and CMS under a single brand.

However, the problem is that PMD brands differ by medical department. Because PMD brands differ, CMS must apply the same brand, causing unnecessary costs. Therefore, hospitals have a high demand for brand integration of centralized monitoring software CMS. Accordingly, Selvas AI is developing hospital-wide integrated monitoring CMS software. From this year, pilot hospitals will be selected and tested for commercialization.

Analyst Choi Jae-ho explained, "The HCI (Human Computer Interaction) sector, including Selvy Medivoice, has a structure where royalties are received annually per PC with software installed," adding, "As the number of installations increases, the scale grows, and since almost no costs occur after deployment, it is a business model that maximizes operating leverage."

Selvas AI recorded sales of 112.5 billion KRW and an operating profit of 760 million KRW last year based on consolidated financial statements. This includes the performance of the medical device subsidiary Mediana and Selvas Healthcare.