At the end of last year, Livsmed, a surgical instrument specialist that entered the KOSDAQ market with a market capitalization of 1 trillion won, moved to target the global cancer surgery market by putting forward its next-generation surgical robot "Stark."
However, the market remains cautious. That is because the key variable for future corporate value is seen as whether it can translate Stark's technology into actual overseas sales growth and improved profitability.
On the 27th, Livsmed shares plunged as much as 17% intraday. As the stock fell sharply immediately after Stark, which had drawn expectations from the medical community and the market, was unveiled, attention focused even more on the market reaction.
The company unveiled Stark for the first time the previous afternoon at the Grand InterContinental Parnas Seoul in Gangnam-gu, Seoul, to an audience of about 100 medical professionals and investors, and also held a demonstration of a laparoscopic surgery on a body model using Stark. On site, there were positive reviews of its differentiated structure and operability compared with existing surgical robots.
Stark is a laparoscopic surgical robot based on multi-joint technology, designed to enable more precise minimally invasive surgery. In particular, the 90-degree joint technology is cited as the core foundation for actual operability improvements. It combines two sets, each with two robot arms mounted on one body (cart). Through the four robot arms mounted on two carts in total, it increases operating room space efficiency and deployment flexibility. Compared with existing surgical robots, its size has been reduced by more than half, and it also secures freedom in height, approach angle, and direction changes.
Eduardo Parra-davila, president of the Society of Robotic Surgery (SRS), who attended the event, said, "Stark's 90-degree joint and modular architecture are a true game changer," adding, "The K-robot will be a decisive trigger for leading the global surgical market."
But the market's reaction was a bit different. The market appears to be focusing more on the actual commercialization potential than on Stark's technology.
A market expert who attended the event said, "It is clearly differentiated and has business potential compared with existing imported robots," but added, "Medical devices involve complex country-by-country approval procedures and take time to enter hospital supply chains, and because clinician training is also required, it may take some time before sales are reflected."
The person added, "Investor sentiment across the biotech sector has been weak recently, so to see a rebound in the share price, overseas results ultimately need to be clear."
The global robotic surgery market is effectively led by "da Vinci," the system from U.S. surgical robot company Intuitive Surgical. The market also sees Stark's speed of gaining a foothold in major global markets such as the United States and Europe as a key variable for future corporate value.
In Korea, CUREXO, Koh Young Technology, and meerecompany are also moving to commercialize surgical robots, but their global market influence is still considered limited.
The company plans to apply for item approval from the Ministery of Food and Drug Safety in July, aiming to obtain approval within the year. It then plans to expand approvals to Japan next year and the United States in 2028. The industry expects that some sales could be recognized as early as this year.
Livsmed was warmly received by the market when it listed on the KOSDAQ in December last year with a market capitalization of 1 trillion won. The company earned recognition for its technology by commercializing the handheld laparoscopic surgical instrument "ArtiSential," which implemented a 90-degree multi-joint structure for the first time in the world. Designed to replicate a surgeon's hand movements, it was seen as addressing the limitations of conventional laparoscopic surgery.
Investor enthusiasm ran hot after the listing. On the first day, the share price rose more than 10%, and on the 20th it surged more than 10% again on news that cumulative intellectual property (IP), including patents, trademarks, and designs, had surpassed 1,000. Since the listing, its market capitalization at one point expanded to around 2 trillion won.
However, challenges remain on the performance side. Livsmed is still posting operating losses.
In the first quarter of this year, revenue was 10.26322 billion won, up 5.5% from a year earlier, but the operating loss increased 25.7% from 6.65725 billion won to 8.36687 billion won. The market expects full-year revenue to increase about 98% year over year to 101.6 billion won, while the deficit is also projected to reach around 19.4 billion won.
Another burden on results is that overseas sales of the flagship ArtiSential have not expanded as quickly as expected. The company explained that the first quarter is typically an off-season for the medical device sector, increasing performance volatility.
Global competitive conditions are also tough. Johnson & Johnson (J&J), one of the world's largest medical device corporations, is proceeding with U.S. Food and Drug Administration (FDA) approval for its surgical robot "Ottava (OTTAVA)." Including "da Vinci" from U.S.-based Intuitive Surgical, a dominant player in the existing market, competition in the global surgical robot market is expected to become even fiercer.