Seers, which has emerged as a powerhouse in Korea's artificial intelligence (AI) medical device market through its partnership with Daewoong Pharmaceutical, is accelerating its push into overseas markets. It is building standalone business capabilities with the Middle East and the United States as new growth pillars, and the industry views this as a move to reduce its dependence on Daewoong Pharmaceutical.
Daewoong Pharmaceutical, by contrast, appears intent on further strengthening the partnership, having tapped Seers as a key pillar in expanding its Digital Healthcare business.
According to the pharmaceutical and biotech industry on the 24th, Seers is accelerating its overseas expansion and moving to strengthen its own sales and marketing capabilities. The industry interprets this as a "de-Daewoong" strategy to increase the share of overseas business, reduce dependence on Daewoong Pharmaceutical, and build an independent growth base.
◇ Rapid growth on Daewoong's back… Seers rises to No. 1 in Korea's "AI bed monitoring"
Founded in 2009, Seers set the stage for growth when it began collaborating with Daewoong Pharmaceutical in 2020. The two companies signed a domestic supply contract in 2024, and Daewoong Pharmaceutical currently handles domestic sales and marketing for the AI-based inpatient monitoring solution "Think" and the wearable electrocardiogram testing service "MobiCare." Seers is responsible for manufacturing, production, and technical support.
The partnership translated into results. Seers climbed to No. 1 in market share for AI bed monitoring in Korea. In the first quarter alone this year, the number of beds adopting Think increased by 6,000, bringing the total to about 17,000 beds. The supply price per bed is known to be around 3 million to 4 million won.
Thanks to this, first-quarter revenue on a consolidation basis was 32.5 billion won, up 700% from a year earlier, and operating profit turned to the black at 13.9 billion won. Boosted by increased supply volume, the company ended its losing streak starting in the second quarter of last year.
The industry cites Daewoong Pharmaceutical's sales clout as the driver of this growth. Think has been adopted in some wards at Seoul National University Hospital and Samsung Medical Center, and additional ward installations are being pursued at Asan Medical Center and Samsung Medical Center.
A pharmaceutical industry official said, "Without Daewoong Pharmaceutical's strong hospital network, it would have been difficult to win contracts from major hospitals over competitors such as MEZOO and Huinno."
◇ "The next stage is the Middle East and U.S. markets"… Seers strengthens its independent course
However, after cementing its position in the domestic market, Seers is now focusing on attacking overseas markets. In March, the company changed its name from "Seers Technology" to "Seers." It said the move was intended to strengthen its global brand image ahead of expansion into the Middle East and the United States.
It also reorganized to expand overseas business. The company recently hired Director Chung Hoon, formerly of Daiichi Sankyo Japan. Chung is a pharmaceutical and healthcare expert with about 19 years of experience across sales, marketing, and medical functions. The industry views Seers as moving to bolster its in-house sales and marketing capabilities and global network ahead of overseas expansion.
Overseas operations already began in 2023. Seers has entered India, Hong Kong, Vietnam, Kazakhstan, and Mongolia, and plans to cultivate the Middle East and North Africa (MENA) region as a core market going forward. To that end, it secured PureHealth, a United Arab Emirates (UAE) state-owned healthcare group, as its local partner. It also signed a three-year contract worth about 22 billion won to supply MobiCare products and services to PureHealth.
It is also expanding its business scope. After recently agreeing with Samsung Fire and Marine Insurance to jointly pursue an AI Digital Healthcare platform business, expectations are rising for growth in the remote patient monitoring solutions market.
MobiCare's entry into the United States is also taking shape. The company is currently undergoing supplemental procedures to obtain 510(k) clearance, the U.S. Food and Drug Administration (FDA) premarket authorization. If a decision is made next month, it is expected to launch a local pilot project in the United States. The industry expects the company to first secure results in the Middle East market before fully targeting the U.S. market. The earliest commercialization timeline is projected to be the second quarter of next year.
◇ Daewoong plays a 400 billion won Digital Healthcare gambit… Why can't it let go of Seers?
The current contract between the two companies expires in 2028. While both sides are leaving the door open to renewal, there is a difference in temperature over long-term strategy. Whether the partnership will continue for overseas business is also cited as a key variable.
At an investor relations (IR) session in Feb., CEO Lee Young-shin said, "If the performance is good, we could renew the contract (with Daewoong Pharmaceutical)," but drew a line on the possibility of joint overseas expansion, saying, "We already have overseas distributors," and "We can work together if the conditions are right."
Daewoong Pharmaceutical views Seers as a partner it can ill afford to lose. Daewoong Pharmaceutical has designated AI Digital Healthcare as a future growth engine and formed a dedicated unit last year. It has set a goal of achieving 400 billion won in related business revenue within 10 years.
According to the industry, during the review of acquiring a Digital Healthcare company in which Yoon Seok-min, the eldest son of former Daewoong Pharmaceutical Chairman Yoon Jae-seung, is involved, Seers was mentioned as one of the leading candidates. However, a Daewoong Pharmaceutical official said, "There have been no discussions regarding acquiring Seers, and there are no plans currently under review or in progress."
Daewoong Pharmaceutical is also reportedly considering combining various AI solutions centered on Think, including the ring-type cuffless blood pressure monitor "CartBP" and Puzzle.AI's voice recognition-based medical record automation solution "GenNote."
An industry official said, "While Seers is trying to build an independent growth base by expanding overseas rather than in the domestic market, Daewoong Pharmaceutical wants to expand cooperation with Seers as a key partner in its Digital Healthcare business."
The official added, "It can be seen in the same context that the side of former Daewoong Pharmaceutical Chairman Yoon Jae-seung is showing interest in acquiring Seers," and said, "Since Daewoong Pharmaceutical has used its hospital and medical institution network to build Seers into the No. 1 company by market share, it likely thinks it is time to reap investment returns and therefore will not let go easily."