[Edaily Reporter KIM JI-WAN ] OSTEONIC Co., Ltd.(226400)Analysts predict that Osteonic will increase its corporate value by combining its orthopedic implant business with surgical robotics. The company is said to have secured new growth engines by expanding the range of products supplied to global medical device company Zimmer Biomet and acquiring a U.S.-based spinal surgery robotics firm.

Heo Seon-jae, an analyst at SKSecurities, stated in a report on the 5th, “Profit growth centered on the core business is expected to continue, driven by the expansion of product lines supplied to Zimmer and the acquisition of new clients in the trauma and CMF sectors.” “Trauma” refers to products for treating fractures, while “CMF” refers to products used for the treatment and reconstruction of skull and cranio-maxillofacial fractures.

On the 4th, OSTEONIC Co., Ltd. announced that it would acquire a 51% stake in FoxEyes, a U.S.-based developer of spinal surgery robots, for 3 billion won. Analysts suggest this move will create synergies between the companies’ businesses by supplying OSTEONIC’s spinal implants to hospitals that have adopted surgical robots. In the medium to long term, the company plans to expand its business into surgical robots for fracture treatment and cosmetic surgery.

FoxEyes’ flagship product, the “F1 VSR,” features vision-camera-based tracking technology that streamlines preoperative procedures. According to the report, company tests showed that surgery time for two spinal segments was reduced by approximately 77% compared to conventional methods.

The product is also competitively priced. At $850,000 (1.14937 billion won) per unit, it is approximately 30% lower than the $1.2 million (1.62204 billion won) price of existing products compared in the report.

Researcher Heo assessed that “it is possible to expand the customer base to include small and medium-sized hospitals and outpatient surgery centers.” FoxEyes plans to submit a 510(k) application to the U.S. Food and Drug Administration (FDA) in the fourth quarter of this year and pursue approval and commercialization next year.

A return to profitability is expected in the company’s core business. SKSecurities estimated OSTEONIC Co., Ltd.’s third-quarter revenue this year at 13.7 billion won, a 15.4% increase year-over-year, and operating profit at 2.8 billion won, up 27.3%. The projected operating profit margin is 20.5%.

Analyst Heo explained, “We expect profitability to recover as shipments to Zimmer, which were delayed in the second quarter, are now reflected in the results.” As U.S. sales through Zimmer enter their second year, repeat orders are gaining momentum. The company forecasts that its new product, ShuterPasser, will begin exports via Zimmer’s distribution network following FDA approval by the end of the year.

Operating profit for this year and next year is projected at 10.7 billion won and 13.1 billion won, respectively. Although the consolidation of Fox Eyes next year is expected to result in an operating loss of approximately 4.0 billion won, overall operating profit is expected to increase due to growth in the core business.

On the same day, SKSecurities issued a “Buy” rating on OSTEONIC Co., Ltd. with a target price of 7,000 won.