Sky Labs to Supply Daewoong Pharmaceutical With 4.9 Billion Won in Ring-Type Oxygen Saturation Monitors

Sky Labs has signed a supply agreement with Daewoong Pharmaceutical for its ring-type oxygen saturation monitor, CART O2, and will supply an initial batch worth 4.9 billion won.

Sky Labs said on the 2nd that it had signed a supply agreement with Daewoong Pharmaceutical for CART O2 and would supply an initial batch worth 4.9 billion won in the second half of the year. Revenue from the initial supply is expected to be generated and reflected in results this year.

Sky Labs previously set an annual sales target of about 10.2 billion won for this year in its securities registration statement. Having recorded about 5 billion won in sales in the first half, the company has secured this additional contract and is considered closer to meeting its annual target.

However, the size of the initial supply contract and the amount of revenue actually recognized for accounting purposes may differ in timing depending on the detailed contract performance terms and delivery schedule.

CART O2 is a ring-type medical device that received product approval from the Ministry of Food and Drug Safety in the first half of this year. It is covered under the existing national health insurance benefit category for percutaneous blood oxygen saturation measurement, allowing clinicians to prescribe it immediately in wards without a separate noncovered-service process.

CART O2's main feature is its ring-shaped design, which improves patient comfort. Existing clip-type and thimble-type sensors could easily come off when patients moved their hands or during sleep, and pressure made them difficult to wear for long periods. By contrast, CART O2 can be worn like a ring to continuously measure oxygen saturation overnight without coming off.

The measured biometric data are linked in real time to the hospital's electronic medical record system and the nursing station dashboard. Nursing staff can view changes in patients' oxygen saturation at a glance on a central screen without visiting each room, and an alert sounds immediately when an abnormal reading is detected, helping support emergency response.

Demand for oxygen saturation monitoring in South Korea is growing rapidly. According to the Health Insurance Review and Assessment Service's health care big data, annual use of oxygen saturation measurement tests increased 76.8% over five years, from 17.79 million in 2020 to 31.46 million in 2025. The annual number of patients who received the test also rose during the same period, from 2.26 million to 3.89 million.

With this agreement, Sky Labs' portfolio of wearable medical devices for hospitals and clinics has expanded from blood pressure to oxygen saturation. The company has built its position in clinical settings with CART BP Pro, the world's first cuffless ring-type blood pressure monitor it developed.

After signing a domestic distribution rights agreement with Daewoong Pharmaceutical in June 2023, CART BP Pro was listed for national health insurance coverage and introduced at about 2,000 medical institutions nationwide. Having entered most large tertiary hospitals and established a proven distribution network, Sky Labs has opened a path for CART O2 to quickly gain a foothold in wards through the same sales network.

For Daewoong Pharmaceutical, which is responsible for distribution, the agreement also provides an opportunity to advance its comprehensive chronic disease solutions. With CART O2 added to its wearable ECG device MobiCare, FreeStyle Libre continuous glucose monitor and CART BP, Daewoong Pharmaceutical will have completed a multisignal monitoring system covering blood pressure, blood glucose, ECG and oxygen saturation.

Sky Labs is expanding its business model beyond hardware manufacturing and supply to become an AI-based medical data production platform company. Photoplethysmography signals measured at the finger contain complex information, including vascular elasticity, blood flow velocity and blood oxygen concentration, and advanced deep learning algorithms are needed to convert them into precise clinical measurements.

Preparations to enter global markets are also continuing. Sky Labs has completed certification under the European Medical Device Regulation and registration with the U.K. Medicines and Healthcare products Regulatory Agency, and is preparing clinical procedures for U.S. Food and Drug Administration clearance. CART O2 is also planned to expand its supply regions through overseas distribution networks, building on its domestic ward supply.

Industry observers view the agreement as a milestone in the adoption of wearable devices in mainstream health care, moving beyond consumer products for personal health management to become essential equipment in precision ward monitoring systems. However, challenges remain for long-term growth, including ensuring stable equipment return rates and consumables management, complying with medical data security guidelines, and managing the timing of product approvals from overseas regulatory agencies.