Livsmed, a surgical instrument specialist that entered the KOSDAQ market at the end of last year with a market capitalization of 1 trillion won, has moved to target the global cancer surgery market by putting forward its next-generation surgical robot "Stark (STARK)."
However, the market remains cautious. That is because the key variable for future corporate value is seen as whether this will translate not so much into Stark's technological prowess as into actual overseas sales growth and improved profitability.
On the 27th, Livsmed shares plunged as much as 17% intraday. With the stock falling sharply immediately after Stark was unveiled, drawing expectations from the medical community and the market, attention focused even more on the market reaction.
The company unveiled Stark for the first time to about 100 medical professionals and investors and also held a laparoscopic surgery demonstration on a body model using Stark at the Grand InterContinental Parnas Seoul hotel in Gangnam District, Seoul, on the previous afternoon. On site, there were positive assessments 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, its 90-degree joint technology is cited as the core foundation for real operability improvements. It combines two units, each with one body (cart) equipped with two robotic arms. The four robotic arms mounted on two carts in total improve operating room space efficiency and layout flexibility. Its size has been reduced by more than half compared with existing surgical robots, and it also secures freedom in height, approach angle, and directional changes.
Eduardo Parra-davila, president of the Society of Robotic Surgery (SRC), who attended the event, said, "Stark's 90-degree joints and modular architecture are a true game changer," adding, "K-robots will become a decisive catalyst to lead the global surgical market."
But the market reaction was a bit different. The market is analyzed to be focusing more on the actual commercialization potential than on Stark's technological capabilities.
A market expert who attended the event said, "It is clearly differentiated and commercially viable compared with existing imported robots," but added, "Medical devices involve complex approval procedures by country and take time to enter hospital supply chains, and training medical staff is also necessary, so it may take some time before sales are reflected."
The expert added, "Investor sentiment across the biotech sector has been weak recently, so to see a rebound in the stock price, there ultimately needs to be clear overseas results."
The global robotic surgery market is effectively led by the "da Vinci" system from U.S. surgical robot company Intuitive Surgical. The market sees the key variable for future corporate value as how quickly Stark can gain a foothold in major global markets such as the United States and Europe.
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 and aims 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 listed on the KOSDAQ market in December last year with a market capitalization of 1 trillion won, garnering strong expectations from the market. The company was recognized for its technology by commercializing the handheld laparoscopic surgical instrument "ArtiSential," which implements a world-first 90-degree multi-joint structure. Designed to replicate a surgeon's hand movements, it was evaluated to have supplemented the limitations of conventional laparoscopic surgery.
Investor enthusiasm has been strong since the listing. On the first day of trading, the stock rose more than 10%, and on the 20th, it soared more than 10% again on news that cumulative intellectual property (IP), including patents, trademarks, and designs, had surpassed 1,000. Since the listing, market capitalization at one point expanded to around 2 trillion won.
However, challenges remain on the earnings front. Livsmed is still posting an operating loss.
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 this year to increase about 98% year over year to 101.6 billion won, while the deficit is also expected to reach around 19.4 billion won.
The slower-than-expected pace of overseas sales expansion for the flagship product ArtiSential is also cited as a burden on results. The company explained that the first quarter is typically a slow season for the medical device sector, and that its short-term shipping strategy increased earnings volatility.
The global competitive landscape is also formidable. Johnson & Johnson (J&J), one of the world's largest medical device corporations, is also proceeding with U.S. Food and Drug Administration (FDA) approval procedures for its surgical robot "OTTAVA." Including "da Vinci," the established market leader from U.S.-based Intuitive Surgical, competition in the global surgical robot market is expected to intensify further.