[Edaily Reporter Kim Seung-kwon ] Discussions on expanding the delivery of prescription drugs obtained through telemedicine are fueling growth expectations for related companies. This is because telemedicine is set to be institutionalized with the enforcement of the amended Medical Service Act on December 24.

However, analysts note that since many major platforms are unlisted and the pathways through which pharmaceutical distribution, delivery, and pharmacy IT companies stand to benefit differ, investors should focus on the actual value chain generating revenue rather than simply the label of “medication delivery-related stocks.” Pharm E-Daily analyzed companies that are likely to benefit following the institutionalization of medication delivery.

Stock Prices Reflect Market Expectations… Pharmaceutical Distribution and Prescription Delivery Are Different

On August 20, the government announced it would review measures to expand prescription delivery to all patients receiving telemedicine services, as well as amendments to relevant laws and regulations. Consequently, expectations within the industry are rising.

According to industry sources, there are 30 major telemedicine and prescription delivery platforms in South Korea. Since most are unlisted companies, there is a trend in the stock market to identify links with related listed companies. However, some argue that it is difficult to classify a company as a direct beneficiary of the expanded delivery service simply because it handles pharmaceuticals.

Looking at companies expected to benefit, BLUEMTEC CO., LTD.(439580)is a prime example among listed firms. BLUEMTEC CO., LTD.’s stock price has recently turned upward; as of 11:09 a.m. on the 16th, it stands at 2,245 won, up about 5% from the previous day.

For logistics companies as well, determining whether they will benefit requires examining the actual contract structures. During the COVID-19 pandemic, DoctorNow utilized external logistics networks such as “Bureung” and “Barogo,” but this time, it is also considering establishing its own delivery network. Analysts note that even if delivery volumes increase, the share going to logistics companies could vary depending on whether the platform operates directly or outsources the service.

An official in the telemedicine industry explained, “Ultimately, the key issue is who receives payment at which stage—whether it’s the platform securing patients, the pharmacy dispensing medication, the delivery of prescriptions, the actual delivery, or confirmation of receipt,” adding, “Expectations that the market will open up and the structure through which companies generate profits are two separate issues.”

DoctorNow Expects to Resume Deliveries… Not All 1.45 Million Orders Were Telemedicine Consultations

DoctorNow, a privately held company, is recognized as an operator with experience in running delivery services and a strong user base. The company has stated its intention to contribute the patient demand data, regional and time-based accessibility insights, and safety management data—all gathered from operating approximately 1.15 million deliveries in the past—to the regulatory discussions.

Usage figures are also on the rise. According to figures released by DoctorNow, the number of medical consultations and appointments in the first half of this year exceeded 1,452,000, a 117% increase compared to the same period last year. However, this figure combines both telemedicine and in-person appointment bookings. Of these, telemedicine consultations accounted for approximately 1,050,000, while in-person appointments approached 400,000. This is why the total number of service instances should not be directly interpreted as the potential volume for medication delivery.

The need to secure new revenue streams is also growing. DoctorNow established its subsidiary, Bijin Pharmaceuticals, in February 2024 to enter the wholesale business targeting pharmacies; however, a legislative amendment restricting telemedicine intermediaries from concurrently operating pharmaceutical wholesale businesses has made a business restructuring inevitable. Medication delivery is being cited as a growth driver to replace this.

However, resuming delivery and ensuring profitability are separate challenges. The business viability depends on who—the patient, the pharmacy, or the platform—will bear the delivery costs, and how responsibilities for dispensing, medication counseling, and the delivery process will be divided. Even if the number of users increases, profit improvement may be limited if delivery and safety management costs rise in tandem.

A representative from DoctorNow stated, “There were quite a few patients who dropped out because they couldn’t obtain their medication even after receiving a telemedicine consultation,” adding, “If delivery is permitted, the process from consultation to pickup will be seamless, significantly improving the user experience.”

Carelabs Co.,Ltd and GoodDoc Holdings Serve as the Link… The Merger with Babytalk Should Also Be Considered

Carelabs Co.,Ltd(263700), which owns the telemedicine platform GoodDoc, is also being mentioned. Carelabs Co.,Ltd spun off GoodDoc as a wholly-owned subsidiary through a corporate split in 2020. GoodDoc has experience delivering prescription medications via courier and same-day delivery in the Seoul area during the COVID-19 pandemic.

As of 2023, it has secured a database of approximately 70,000 medical institutions and 20,000 pharmacies nationwide, and its confirmed integration with the Korean Pharmaceutical Association’s prescription delivery system serves as a key business link. Analysts note that even if the system is designed around public infrastructure, there remains room to integrate with existing services.

#UbiCare is a company that can approach the market from the perspective of medical and pharmacy IT infrastructure rather than platform operation. As of 2024, it has a network of approximately 25,700 hospitals, clinics, and pharmacies nationwide. It is also the largest shareholder of Vibros, the operator of the hospital appointment platform “Ddokdak.”

UbiCare’s potential path to benefit lies not in the delivery itself, but in the information processing required for delivery. Alongside discussions on expanding prescription drug delivery, the government has announced plans to establish detailed management measures, including quality control of dispensed medications, verification of actual patient receipt, and medication counseling. In this process, there may be demand for systems that allow pharmacies to record and transmit relevant information.

This means that the extent to which pharmacy operations are computerized is more important than which company takes the lead in competition among platforms. However, it is important to distinguish between the need for such functions and the generation of separate revenue. The contribution to revenue varies depending on whether these features are provided as free updates to existing software or sold as paid add-on services.

Another factor that will determine which companies benefit is the design of the regulatory framework. The government is drafting subordinate regulations that will allow delivery primarily through neighborhood pharmacies but prohibit pharmacies specializing in telemedicine. This could impose restrictions on business models where platforms concentrate prescription and delivery volumes on specific pharmacies.

Once the public electronic prescription transmission system demanded by the Korean Pharmaceutical Association is established, the role of private platforms and their fee structures may also be affected. This is because revenue models vary depending on the scope of services handled by the platform—from medical consultation brokerage to prescription transmission, pharmacy coordination, and delivery.

Another industry official predicted, “The limited delivery service set to begin this December will be the first test of the system’s operation,” adding, “How effectively we reduce delivery errors and quality issues, and how we implement patient receipt confirmation and medication counseling, are expected to be key factors in determining whether to expand the program on a full scale.”