“Qumico”
Starting Next Year… The Blueprint for Collaboration Embodied in the New Nameof MiCo Ltd. On the 15th, QuantaMatrix Incorporated held an extraordinary general meeting of shareholders and approved amendments to its articles of incorporation to change the company name and add new business objectives. The new name, “Qumico,” is based on “Quanta,” which signifies precision technology, and embodies the company’s commitment to realizing momentum, innovation, and technology convergence.
This new name, which appears to combine “Q” from QuantaMatrix Incorporated and “MiCo” from MiCo Ltd., also signifies the intention to further solidify the collaboration between the two companies. It reflects their determination to enter a new phase of growth by leveraging each company’s technological, manufacturing, and sales capabilities. This name change can be viewed as an extension of the business restructuring that followed MiCo Ltd.’s investment late last year.
Previously, MiCo Ltd. acquired 36 billion won worth of perpetual convertible bonds (CBs) through the Pentastone No. 3 New Technology Investment Fund at the end of last year and introduced a co-CEO system in June of this year. Since then, the companies have been jointly pursuing cost reduction, production automation, and measures to strengthen overseas sales capabilities within QuantaMatrix Incorporated’s existing innovative medical device business.
QuantaMatrix Incorporated focuses on dRAST, a rapid antibiotic susceptibility testing device. MiCo Ltd. has accumulated experience in manufacturing and overseas operations, primarily in semiconductor materials and equipment. The structure is designed to enhance dRAST’s production efficiency and competitiveness in overseas markets by combining QuantaMatrix Incorporated’s diagnostic technology with MiCo Ltd.’s manufacturing and sales capabilities.
QuantaMatrix Incorporated officials stated, “We are moving toward expanding synergies by combining the manufacturing, sales, and technical capabilities that each company possesses,” adding, “Since the investment at the end of last year, collaborative results have already emerged in our existing businesses, and we plan to further strengthen these efforts.”
However, the name change will take effect early next year. This decision was made in consideration of ongoing sales activities and medical device certification procedures under the existing corporate name in overseas markets such as the European Union (EU) and India. The company determined that changing the name immediately could cause confusion among local business partners and certification authorities.
New Business in Brazil and Indonesia, dRAST in India… A Two-Track Overseas StrategyQuantaMatrix Incorporated is entering the cosmetics and aesthetics sector. The company plans to pursue local production and domestic and international distribution of medical supplies, including aesthetic products such as toxins, fillers, and skin boosters, as well as cosmetics and in vitro diagnostic devices. Initially, the company will secure domestic brand products for overseas distribution, and subsequently expand its business scope to include local production, its own brand, and Original Design Manufacturing (ODM) supply.
Brazil and Indonesia are expected to be the first markets for this new venture. The starting point is the sales and marketing network established locally by MiCo Ltd. through its semiconductor materials and equipment business. The vision is to leverage the synergies between the two companies’ business experiences to build a local production and distribution model.
This new business complements the company’s existing diagnostic device business. dRAST is a high-value-added device that helps quickly identify the appropriate antibiotics for patients with sepsis. However, since it must undergo country-specific medical device certification, local evaluations, and hospital adoption procedures, it takes time from the initial supply of the equipment to the full-scale generation of revenue.
In contrast, the cosmetics and aesthetics business can generate revenue relatively quickly without the need for a large-scale initial investment in R&D personnel or facilities. Since it is difficult to reach the break-even point (BEP) in the short term relying solely on the innovative medical device business—which carries a heavy fixed-cost burden—the company has added the local production and distribution business as a means to supplement its revenue.
A QuantaMatrix Incorporated official stated, “Once the addition of the business purpose is finalized, revenue from the new business could begin as early as the second half of this year,” adding, “Since the new business does not entail a significant fixed-cost burden, it will have a positive impact on improving revenue and profitability at an early stage.”
The company also plans to strengthen its existing business through collaboration with MiCo Ltd. The dRAST business is drawing particular attention for its performance in the Indian market. Following its initial equipment shipment to India late last year, QuantaMatrix Incorporated made additional shipments in the first half of this year. While it typically takes more than a year from equipment delivery to local evaluation and commercial operation, the company explains that in India, it moved into the full-scale commercialization phase in about six months.
The company is also pursuing additional orders in the rapidly growing Indian market. Given that India faces a serious problem with antibiotic resistance and is considered a market with high demand for sepsis diagnosis, the potential for additional dRAST shipments is drawing attention.
The next-generation product, dRAST evo, is a strategic move aimed at enhancing the cost competitiveness of existing operations and expanding overseas. QuantaMatrix Incorporated plans to complete the development of dRAST evo in the second half of this year and then apply for European medical device certification. The company aims to begin mass production once certification is obtained in the first half of next year. Additionally, the company is investing in automated kit production facilities to simultaneously expand overseas supply and reduce costs.
