M-3004 generator [Source : RF Medical]
RF Medical, a Seoul-based radiofrequency ablation and other medical devices developer, has sharply improved top and bottom line under the arm of private equity fund STIC Investments that acquired the company in 2019.
According to sources on Thursday, the company’s revenue is expected to grow to 15 billion won ($11.23 million) this year from 7.3 billion won in 2018. Operating profit is projected to have more than doubled to 5 billion won in the same period, with operating margin staying above 30 percent for four straight years.
The remarkable growth of RF Medical is driven by bold investments from STIC to improve the company’s R&D, manpower, and performance-based reward systems.
Since its acquisition, STIC has invested 17.5 billion won in total to enhance the company’s research on new products and obtain regulatory certifications in the United States, China and Europe.
Through the aggressive investment, RF Medical has been able to maintain its high operating margin with its focus on mainstay products for radiofrequency ablation in the treatment of cancer and varicose vein. The products are highly competitive in the global market.
The company’s major products represent minimally invasive medical devices designed to insert an electrode thinner than a ballpoint pen lead and treat only the affected area with high heat without open surgery or damage to other parts.
This market is mostly controlled by multinational companies such as Medtronic and Johnson & Johnson. RF Medical was the first in Korea to develop a device for oncology treatment that only six global companies can produce. Its oncology treatment has successfully entered Europe and Taiwan and is expanding its presence in Southeast Asia, Eastern Europe, and South America with pricing and technology competitiveness.
The company exports its products to more than 50 countries, and its overseas sales account for 80 percent of its entire sales.
RF Medical plans to complete R&D for minimally invasive medical devices using microwave and cooling techniques next year to establish a market position as a comprehensive minimally invasive solution medical device company.
By Oh Dae-seok and Minu Kim
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