LIVSMED to Launch Two New Products in October, Reigniting Growth in Q4

[Financial News]  LIVSMED is expected to reach an earnings inflection point in the fourth quarter of this year as it simultaneously launches the ArtiSeal vessel-sealing device and the next-generation laparoscopic surgical instrument ArtiSential PRO. The key development is the expansion of its product lineup from the existing ArtiSential to higher-value surgical instruments amid growing expectations in the securities market.
On the 18th, HANYANG SECURITIES analyst Oh Byung-yong said, "LIVSMED is currently mass-producing an upgraded version of ArtiSeal, with sales expected to begin in early October." He did not provide an investment rating or a target price. 
ArtiSeal is a vessel sealer targeting a market dominated by Medtronic's LigaSure and Johnson & Johnson's (J&J) EnSeal.
LIVSMED used its proprietary parallel (In-Plane) technology to enable articulation in ArtiSeal. The product is also drawing attention from an earnings perspective because it commands a higher price and addresses a larger market than ArtiSential, the company's existing flagship product.
ArtiSeal generated initial revenue in the fourth quarter of last year and the first quarter of this year. However, LIVSMED discarded its existing inventory in the second quarter and switched to the upgraded product. The one-off costs incurred during this process were reflected in its second-quarter results.
ArtiSential's growth has also continued. As of the second quarter of this year, 691 surgeons at 261 hospitals in South Korea were using ArtiSential.
That was an 11.5% increase from the same period a year earlier. Revenue from ArtiSential alone totaled 49.6 billion won last year.
Sales of the next-generation product ArtiSential PRO will also ramp up starting in October. Oh said, "From the fourth quarter, two new revenue streams—ArtiSeal and ArtiSential PRO—will be added simultaneously to ArtiSential's existing growth." 
The recent decline in the stock price is also believed to have been driven largely by supply-and-demand factors rather than operating performance. LIVSMED's share price fell 37.6% after the company announced its second-quarter results on August 14. HANYANG SECURITIES identified the simultaneous selling by venture investors who had invested before the company was listed and by foreign investors as a major factor.
Oh added, "The overhang from venture investors is nearing an end, and the foreign ownership ratio has also fallen to 2.8%. With ArtiSeal and ArtiSential PRO set to go on full-scale sale from October, we can expect strong growth in the fourth quarter." 
[email protected] Kim Kyung-ah Reporter