[Click eStock] "Plasmapp Accelerates Turnaround with Two New Products and Global Contracts"

There is growing analysis that Plasmapp is accelerating its improvement in performance in the second half of the year, driven by the launch of new products and the expansion of global partnerships. The ongoing support from its largest shareholder, Dreamtech, is also cited as a factor enhancing financial stability, drawing attention to the possibility of the company achieving break-even point (BEP) this year.

On July 22, independent research firm ValueFinder released a report evaluating that Plasmapp is securing performance momentum by launching two new products in the second half of this year and further expanding collaboration with global partners such as Megagen Implant and QMED. In particular, it assessed that the company is maintaining its growth trajectory with the goal of reaching break-even point this year.

Established in 2015 as a spin-off from a KAIST Department of Physics laboratory, Plasmapp is a bio-plasma-based medical device specialist. It entered the KOSDAQ market in 2022 through the technology special listing program. Its main business comprises the low-temperature plasma sterilization solution ‘STERLINK’, the implant surface reactivation solution ‘ACTILINK’, and consumables such as sterilization pouches and sterilants.

In the first quarter of this year, the company saw its sales increase by 171% compared to the same period last year, entering a turnaround phase. During the same period, equipment accounted for 60.0% of sales, consumables made up 37.5%, and exports represented 41.5%, indicating the company is establishing a strong foundation in the global market.

Product line expansion is also scheduled for the second half of the year. Plasmapp plans to launch the ‘Plasma Steri 700’, a low-temperature sterilizer capable of sterilizing large medical devices, as well as ‘Plasma Endo’, a root canal treatment device that applies low-temperature plasma technology.

The company’s global business development continues apace. In March, Plasmapp signed a supply contract worth 2.5 billion won with Megagen Implant, followed by a contract valued at 3.5 billion won with QMED in the U.S. in June. Both contracts include exclusive sales rights and first purchase options, making it highly likely that additional supply contracts will be signed.

In terms of financial stability, support from its largest shareholder, Dreamtech, has been cited as a positive factor. Dreamtech holds a 27.68% stake in Plasmapp and is a KOSPI-listed company with annual sales of 1.2 trillion won and 163.2 billion won in cash and cash equivalents. Since 2023, Dreamtech has participated in several paid-in capital increases, becoming the largest shareholder, and is also providing a joint guarantee for the repayment of Plasmapp’s convertible bonds upon maturity.

Woobin Jeon, a research analyst at ValueFinder, explained, “Plasmapp has a business structure where equipment sales lead to recurring revenue from consumables. If the distribution of equipment expands with the launch of new products, there is potential for structural improvement in profitability over the long term.”

He added, “If the company achieves sales of 18 billion won and break-even point this year, it would not only mitigate concerns about being designated a management issue stock, but also allow for a revaluation of the company as a plasma meditech platform.”

This content was produced with the assistance of AI translation services.