So-called "blood pressure rings" unveiled by Sky Labs(386380) have jumped nearly 30% since listing on KOSDAQ recently. The company developed a ring-type device that measures blood pressure continuously for 24 hours. It is pushing into the market by stressing that patients can use it comfortably in daily life. However, to escape losses, it faces the task of expanding into overseas markets, which are more profitable than Korea.
◇ Easy to use in daily life… blood pressure measurement during sleep
Sky Labs did not post strong demand when it listed on KOSDAQ on the 4th. The retail subscription competition ratio at the end of last month was about 2.85 to 1, the lowest among this year's IPOs. The subscription deposit came to 7 billion won. The offer price was 10,000 won, below the desired range (13,000–16,000 won). However, Sky Labs shares have been rising, overcoming the weak debut. On the first day of listing, they closed at 23,500 won, above the offer price, and on the 9th, they ended at 30,300 won. Based on the closing price, they jumped 29% from the first day.
The medical device introduced by Sky Labs allows patients to measure blood pressure by wearing a ring on a finger. A special light emitted from the ring measures vascular blood flow and converts it into blood pressure readings. Conventional blood pressure monitors, which measure by wrapping a cuff around the arm to apply pressure, were inconvenient for daily use. The ring form is cuffless, so it can measure blood pressure even during sleep at night, the company said.
The blood pressure ring comes in the Cart BP Pro for hospitals and the Cart BP for individuals. Distribution to medical institutions is exclusively handled by Daewoong Pharmaceutical(069620). Forty-eight percent of Sky Labs' total sales come from Korea, and Daewoong Pharmaceutical is effectively responsible for medical-institution sales within that. The contract between Sky Labs and Daewoong Pharmaceutical runs through June 2028. The company said an extension is possible. In addition, individuals can separately purchase the blood pressure ring through Kakao Healthcare's blood glucose management service app, Pasta. A Sky Labs official said, "For hospitals and clinics, it can measure blood pressure every 20 minutes, and for individuals, every hour."
◇ Must clear the U.S., where blood pressure measurement costs more than in Korea
Sky Labs posted sales of 4.9 billion won in the first half of this year. That was up 23% from the same period last year. The operating loss widened to 9.2 billion won. Sky Labs faces the task of accelerating overseas expansion to improve results. That is because the unit price the blood pressure ring can command is higher overseas than in Korea.
For blood pressure measurement, the domestic reimbursement (the money the National Health Insurance Service pays hospitals) is 18,000 won, while it is 19,000 won in Japan and 65,000 won in the United States. In Europe, including the United Kingdom, blood pressure can be measured not only in hospitals but also in pharmacies, making for a broader market. In the U.K., hospitals can receive 210,000 won and pharmacies 90,000 won.
Sky Labs signed a contract with Otsuka Pharmaceutical in Japan to supply blood pressure rings to medical institutions. It plans to obtain medical device approval in Japan next year and release the product as early as 2028. In Europe, it obtained medical device certification and signed a product supply contract with IEM GmbH of Germany with initial sales valued at 2.6 billion won.
However, it has not yet cleared the U.S. Food and Drug Administration (FDA) hurdle. Sky Labs aims to complete related clinical trials in the second quarter of next year and obtain FDA clearance by the end of the year at the earliest. A Sky Labs official said, "We plan to find a local partner in the United States that can distribute the blood pressure ring."