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[Shin-Min Joon, Edaily Reporter] On Aug 22, South Korea’s pharmaceutical and biotech stock market saw notable gains in shares of medical artificial intelligence (AI) companies such as Seerstechnology and Vuno. Seerstechnology rose sharply on expectations of continued strong earnings after becoming the first domestic medical AI firm to turn profitable.

Vuno also gained on forecasts that it will post quarterly profits in the second half of this year. Drug developer Orum Therapeutics advanced as well buoyed by news that financial investors (FI) who invested in the company before its IPO did not sell their holdings even after lock up expirations. The day’s rally in SIOS and Orum was further supported by PharmEdaily’s premium pay to read articles being made available free of charge.

Seerstechnology stock trend on Aug 22. (Image=MP Doctor)

Seerstechnology achieves first profitability among medical AI firms

According to KG Zeroin MP Doctor (formerly MarketPoint) shares of Seerstechnology closed at 44,100 won, up 16.05 percent from the previous session. A PharmEdaily article titled “SIOS Technology, First Profitability in Korean Medical AI…Winning Strategy Pays Off” reported that the company became the first domestic medical AI firm to post an operating profit.

For the second quarter, SIOS recorded revenue of 8 billion won and operating profit of 1.5 billion won, up 799.5 percent from a year earlier. The company swung to a profit from a 2.9 billion won loss in the same period last year. On a half-year basis, SIOS reported operating profit of 900 million won, compared with a 5.5 billion won loss a year earlier. Revenue surged 737 percent from 1.6 billion won to 13.4 billion won.

Analysts attribute the turnaround to rapid adoption of its inpatient monitoring service, THINK, which tracks vital signs in real time. THINK eliminates the need for nurses to manually check and record patient vitals every eight hours and provides alarms for abnormalities, enabling quicker medical responses. Unlike a one sided sales model, THINK allows both hospitals and the company to generate revenue. The system expanded from 3,000 to 6,000 beds in just two months.

A Seerstechnology official said “We achieved profitability ahead of other domestic medical AI firms because we built a business model directly linked to insurance reimbursement. Rather than a simple sales model we developed products that are continuously used at hospitals and by patients.”

With hospital adoption accelerating the company expects further growth in the second half. Seerstechnology’s cost ratio hovers around 30 percent and the figure declines as scale increases.

Vuno expected to turn quarterly profit in H2

Shares of Vuno rose 10.49 percent to 20,850 won. The company is projected to achieve operating profit on a quarterly basis in the second half. According to consensus estimates from financial information provider FnGuide, Vuno is expected to post third-quarter revenue of 10.4 billion won and operating profit of 200 million won.

Growth is being driven by DeepCARS, its AI-based cardiac arrest prediction device, now deployed across 62,000 hospital beds domestically. The company has also streamlined operations. To accelerate overseas expansion, Vuno obtained CE MDR certification for DeepCARS in May and is now targeting 27 EU markets.

The company is working with an Austrian AI firm experienced in securing reimbursement for AI based medical devices in Europe to facilitate adoption and insurance coverage, while also preparing for major academic conferences. DeepCARS, the first Korean AI medical device to receive U.S. FDA Breakthrough Device Designation in 2023, is also expected to gain FDA clearance this year. In March Vuno transferred its lung nodule detection solution Vuno Med LungCT to Coreline Soft to concentrate resources on DeepCARS.

A company official noted “Investor expectations for profitability in the medical AI sector are driving the share price. We will continue efforts to achieve quarterly break even as soon as possible.”

Orum Therapeutics investors maintain confidence

Shares of Orum Therapeutics jumped 9.85 percent to close at 25,100 won. A PharmEdaily article titled “‘Not a Single Share Sold’ Orum Therapeutics Investors Hold On Confidence Intact” highlighted that several financial investors who backed the company before its IPO have held onto their shares even after lock up expirations.

Orum decided to discontinue development of its lead pipeline ORM-5029 following a patient death from liver failure in a Phase 1 trial which complicated its IPO. The drug was excluded from IPO filing revenue projections, and development was terminated post listing.

The company is now focusing on two oncology programs ORM-1153, a blood cancer therapy and ORM-1023 for small cell lung cancer. Preclinical data for ORM-1153 will be presented as a poster at the American Society of Hematology meeting in Florida this December.

A global Phase 1 trial application is slated for Q4 2026. ORM-1023’s candidate will be finalized next year with research findings to be presented at AACR 2027. Orum is also seeking license out opportunities for both assets.

An Orum official commented “Some institutions did not sell a single share after lock up expiry showing that expectations for Orum remain strong.”