[E-Daily Reporter Kim Seung-kwon ] Curiox Biosystems Co., Ltd.(445680)(Curiox) is set to improve its earnings structure by expanding its software (SW) business. Having remained at around 5 billion won in revenue for several years since its IPO and recognizing the limitations of its equipment-sales-centric model, Curiox is now fully launching a business transformation centered on its software product, Pluto Code.

In April, the company achieved its first milestone by signing its first comprehensive software licensing agreement with a major, unnamed global pharmaceutical company. The company stated that it plans to secure additional contracts within the year and has set a goal for the software business to surpass the equipment business in revenue share within three years.

Curiox Biosystems Co., Ltd.: The Significance of the Comprehensive License Agreement

The company explains that this agreement differs from its traditional sales approach. Whereas previous equipment sales involved targeting individual laboratories one by one, the comprehensive license agreement is structured to secure dozens or hundreds of affiliated laboratories as customers at once by persuading a single global headquarters. Once the global central research organization completes technical validation and legal review, each laboratory can adopt the product simply by placing an order, without the need for separate negotiations.

A Curiox representative explained, “Whereas we previously had to conduct sales targeting individual laboratories, we have now established a foundation that allows the entire global organization to use the product under the same conditions,” adding, “Since technical validation is complete, each laboratory can easily adopt the product simply by placing a purchase order.”

C-FREE is cited as Curiox’s core technology. C-FREE refers to a non-centrifugal cell washing technology that replaces the centrifugation process, which has been the standard in cell analysis for decades.

Centrifugation had the limitation of causing damage to cells by subjecting them to physical shock, which reduced data reproducibility. Pluto Code is software that enables customers to install and utilize C-FREE technology on liquid-handling workstations they already own. The fact that there is no need to purchase new equipment is cited as a key factor in lowering the barrier to entry for customers.

There are also structural advantages in terms of profitability. While hardware incurs manufacturing, logistics, and maintenance costs, software has virtually no additional costs. In fact, Pluto Code is compatible with third-party liquid-handling workstations, meaning its potential customer base far exceeds that of Curiox’s own equipment. However, since there are specialized features—such as antibody cocktail preparation—that are only available on Curiox-dedicated equipment, a virtuous cycle is expected in which the spread of the software leads to increased equipment sales.

A Curiox representative explained, “Although the unit price of the software is lower than that of the equipment, the level of profit the company can expect is similar.”

Change in Business Model... Additional License Agreements to Be Signed Within the Year

Financial performance played a major role in Curiox’s shift toward the software business. In fact, the company’s revenue, which stood at 6.8 billion won at the time of its KOSDAQ listing in 2023, fell to 5.2 billion won last year. Operating losses increased from 10.6 billion won to 12.3 billion won during the same period. Although the company’s technological capabilities were recognized, equipment sales faced clear limitations, including lengthy customer evaluation periods and revenue concentrated in specific quarters.

Kim Nam-yong, CEO of Curiox, emphasized, “If the previous period was a phase of technology development and market validation, the next five years will be a time of expansion and standardization.” Pluto Code is the key tool for this expansion. This is because a single comprehensive agreement with the headquarters of a global big pharma company can lead to simultaneous adoption by dozens of its affiliated research institutes.

The company explains that there are many contracts in the pipeline. Curiox is currently discussing similar agreements with multiple global pharmaceutical companies. Curiox plans to secure additional licensing agreements within the year while simultaneously expanding partnerships with global equipment manufacturers that sell centrifuges and automated workstations. This creates a win-win structure where equipment manufacturers gain a competitive edge, and Curiox accelerates market penetration by leveraging its global sales network.

In fact, industry observers believe that the first contract with a major pharmaceutical company will serve as a reference (reputation) and accelerate the pace of subsequent contracts. An official in the biohealthcare industry stated, “The first comprehensive licensing agreement with a global major pharmaceutical company is a strong signal proving the reliability of our technology,” adding, “Using this as leverage, the pace at which we secure contracts with pharmaceutical companies of similar scale will accelerate.”

A Curiox official also stated, “We expect the software business to surpass the equipment business in share within the next three years,” adding, “We plan to begin aggressively expanding these related businesses starting this year.”