Cereus is poised to transform into an export-oriented medical AI (artificial intelligence) platform. The company plans to begin its first supply of "mobiCARE," a wearable AI-based electrocardiogram (ECG) analysis solution, to the Middle East and North America in the fourth quarter of this year. While growth continues in the domestic market, the addition of exports is expected to accelerate profit growth.
On the 1st, Cereus announced that procedures to supply mobiCARE to the United Arab Emirates (UAE) and the United States are progressing smoothly. The company is also expanding its target markets to Saudi Arabia, Kuwait, Vietnam, Thailand, and other regions. Actual export volumes are scheduled to be reflected in overall performance starting from the fourth quarter of this year.
In May last month, Cereus signed a contract to supply mobiCARE worth at least 22 billion won over three years to ONE HEALTH, a subsidiary of PureHealth, the largest healthcare group in the UAE. Although the contracting process and volume supply were partially delayed due to the impact of the war between Iran and the United States, export operations have recently gained momentum again. Supply is expected to be realized soon. Additionally, Cereus has established a strategic partnership with PureHealth and is reportedly discussing various collaboration plans locally.
Entry into the United States, the world's largest healthcare market, is also imminent. In June last month, Cereus obtained product approval for mobiCARE from the U.S. FDA (Food and Drug Administration). This has laid the procedural foundation for selling mobiCARE in the United States. The company is currently at the stage of discussing specific sales strategies with local partners. Supply is expected to begin in earnest within this year.
Cereus's mobiCARE is a medical device that can diagnose abnormal signs of arrhythmia in patients through AI analysis. It is evaluated as being recognized for its technological competitiveness and utility overseas, alongside Cereus's AI inpatient monitoring platform, "thynC."
By increasing the supply of thynC to domestic hospitals, Cereus has established itself as a leading inpatient monitoring platform company in Korea. In the first half of this year, the cumulative number of hospital beds equipped with thynC domestically reached approximately 27,000, more than doubling compared to the end of last year. As of the first half of this year, thynC's domestic market share is 67%, and its penetration rate is 3.8%.
Driven by growth in the domestic market, Cereus achieved its highest-ever performance in the first half of this year. On a consolidated basis for the first half of this year, revenue was 60.9 billion won, and operating profit was 26.8 billion won, representing increases of 407% and 2,888%, respectively, compared to the same period last year. The company is evaluated as having built a stable profitable structure as an AI medical platform enterprise.
IBK Investment & Securities estimated that Cereus's revenue for this year will reach 129.2 billion won, and operating profit will be 55.7 billion won. It projected next year's expected revenue at 178.3 billion won and operating profit at 82 billion won.
Researcher Jo Eun-ae of IBK Investment & Securities explained, "Cereus continues its growth based on the low penetration rate and high market share in the domestic remote inpatient monitoring system market." She added, "Secondary hospitals can be supplied in units of 100 to 500 beds with short adoption times, making them a central axis for expanding bed supply. Starting from the second half, bed supply will begin at nursing hospitals, where the penetration rate is only 1%."
She further analyzed, "Following the definitive contract with the UAE, exports are currently awaiting the finalization of local reimbursement rates." She noted, "Starting with the UAE, there is a high possibility that export regions will expand. In the United States as well, once the definitive contract is completed, some revenue generation is expected within this year." She added, "The expected overseas revenue centered on mobiCARE for this year is 20 thousand won from the Middle East and 50 billion won from the United States."
A Cereus official stated, "While there were some difficulties due to factors such as war, export operations have recently normalized, and supply will begin in earnest in the fourth quarter." The official added, "Given that thynC and mobiCARE are attracting significant interest not only in the UAE and the United States but also in various regions such as Saudi Arabia, we expect export volumes to increase noticeably starting next year."
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