The innovative smart medical company, Medimaging Integrated Solution Inc. (MiiS), saw a 22% year-on-year revenue decline in the first five months of this year due to customer inventory adjustments and pre-market preparations for its licensed single-use cystoscope from Boston Scientific. Chairman Chu-Ming Cheng noted a recent demand rebound, with two orders totaling several hundred units. The single-use cystoscope has obtained certifications in 15 countries and will begin large-scale shipments in the second half of the year. The product is expected to launch in the European market early next year, leading to significant revenue growth in the latter half of the year.
In the first quarter, MiiS's revenue was NT$97 million, a year-on-year decrease of 20.6%. The company posted an operating loss of NT$19.82 million and a net loss of NT$10.23 million, resulting in a loss of NT$0.3 per share. The revenue decline, coupled with the acquisition of Lian Chan Precision Co., increased expenses. The cumulative revenue for the first five months was NT$167 million, down 22% from the same period last year. The main sales regions in the first quarter were the United States (48.2%), Europe (22.6%), and Taiwan (13.2%). Sales of own-brand products accounted for 67%, while CDMO contributed 33%.
Mr. Chang explained that the revenue decline in the first half of the year was due to two major reasons. First, digital endoscopes experienced a downturn in orders since the second half of last year due to budget shifts and inventory digestion post-pandemic. Customers have been depleting their inventories through the first half of this year. However, inventory levels are now bottoming out, and demand is gradually recovering. Recently, two large orders, one from Europe and one from the U.S., were secured, each totaling several hundred units, with the U.S. market expected to recover in the second half of the year. Second, the single-use cystoscope was licensed to global medical device giant Boston Scientific at the end of last year. The first half of this year focused on clinical research, data collection, and trials at medical centers. Large-scale shipments will begin in the second half, with a peak expected to start next year.
The cystoscope obtained FDA 510(k) clearance last year and is expected to receive certifications from 18 countries this year, with 15 certifications already secured. Upcoming certifications include Colombia, Brazil, and South Korea, with the European launch expected early next year. Mr. Chang emphasized that Boston Scientific, a leading global advanced medical device company, is progressively increasing its shipment volumes, and he believes future sales will exceed expectations.
As for the micro-camera module, MiiS secured 18 clients in 2023 and added 21 more this year, bringing the total to 39 clients. Mr. Chang stated, "About 80-90% of endoscope manufacturers worldwide use our products. While others rely on manual welding, we use a semiconductor-like process, offering superior stability and image quality. Clients are currently testing samples, with a few already moving to mass production."
Additionally, Mr. Chang revealed that MiiS is in exclusive distribution negotiations with the largest EMS and acute care medical device distributor in the U.S. for its single-use bronchoscope, expecting a decision this year. He remarked, "The exclusive distribution with Boston Scientific has significantly raised MiiS's profile. We are excited to attract more attention from U.S. companies. The second half of the year is full of hope, with existing products resuming shipments and new products gradually rolling out. We anticipate a substantial improvement in second-half performance."
Resource (mandarin) :
