JVM’s Automated Dispensal Systems Reduce Medication Waste and Errors

In developed markets, especially Japan, the US, and the EU, medical organizations and practitioners are known for being conservative, making it difficult for new products and companies to break in or replace established suppliers. How are you addressing this challenge? To what extent is this an issue of reputation versus technology?

Before our ATDPS (Automatic Tablet Dispensing & Packaging System) gained global traction, the leading company’s products dominated the market. Our entry into this field was rooted in our focus on compliance with GMP (Good Manufacturing Practice) standards. Historically, the leading company’s products were nearly impossible to clean properly, but sterilization is critical for these types of medical equipment to prevent cross-contamination, especially since medications move through the same channels. Recognizing this pain point, we designed user-friendly equipment that could be easily disassembled by practitioners themselves, making the cleaning process much more manageable.

As a latecomer to the market, we knew we had to compete on both cost-effectiveness and technological precision to attract clients. In 2004, in a European country, an equipment qualification test was conducted to select a supplier for a state-owned enterprise's equipment. We participated in this test and achieved outstanding results. As a result, while two advanced companies had previously supplied equipment to the state-owned enterprise, following the test, our company and one of the advanced companies were selected as the suppliers. I believe dispensing precision is directly tied to technological advancement, and that was a significant breakthrough for us.

Our product's popularity grew through word of mouth, spreading from one country to another, eventually reaching the US. We don’t have many direct branches overseas. About 16 years ago, we established an agency in the EU, which has since evolved into a full sales corporation. Outside of that, most of our overseas partners operate as independent agencies. We supply them with our products, and they handle the final sales agreements with end users and provide ongoing service.

You mentioned your international expansion, and we previously discussed that you hold a 90% market share in Korea, which is quite substantial. However, when we look at the global market, there seems to be far less automation in hospitals, particularly compared to Asia. There’s some automation in pharmacies, but it's still limited, especially in the US and Europe. Why do you think the adoption of automation in the healthcare industry has been so slow, while industries like semiconductors or displays are highly automated?

In sectors like displays, automation is essential due to the sheer volume of units that need to be handled. These industries operate on such a large scale that manual labor simply can't keep up. Additionally, they must compete with countries like China, which benefit from lower labor costs, making automation crucial for maintaining price competitiveness.

Interestingly, Europe has a history of automating pharmacy dispensing systems, but the pace of adoption varies significantly by region. Countries like the Netherlands, Germany, Belgium, and Sweden were quick to implement automation in their pharmacies. In contrast, places like France, Spain, and Portugal have been slower due to cultural habits and traditional practices.

In an industry where precision is critical because patient lives are at stake, how important do you believe automation is for patient safety, particularly in avoiding medication errors?

While it's difficult to quantify precision exactly, our automated systems include security features, like integrated scanning technology, which allows for precise monitoring of medication dispensing. In the past, human workers had to manually sort and dispense medications from canisters, which naturally led to a higher risk of errors due to reliance on visual inspections. Automation serves as an essential assistant to humans, creating a synergy that enhances overall accuracy and precision.

For example, in Europe, if you need to take five different pills, you might receive them in five separate boxes, which can be cumbersome and inconvenient. In Korea, with our products, all five pills are packaged together in a single unit. This not only improves medication adherence but also contributes to better patient safety and overall healthcare outcomes.

We’re entering an era of super-aging populations, not only in Korea but also in the United States and Europe. You mentioned how challenging it is for elderly individuals to adhere to their medication schedules, especially as they may struggle to remember what and when to take their medication or confuse their pills. How critical is it to minimize human error as we face this aging society?

There are already machines on the market designed to ensure patients take their medication on time. These devices notify patients through alarms or messages, and once the patient takes the pill, the machine recognizes this and sends a notification to a central system, which records it in a database. This is often referred to as a "pouch dispenser" or "home dispenser." For elderly individuals living alone, it’s especially important. We may not always know if they’ve taken their medication as prescribed, and because they may have difficulty managing it themselves, the pouch dispenser helps by dispensing the medication at the correct time to ensure they don’t forget. If they miss a dose, the system can send text messages to family members, alerting them so they can check in to make sure everything is okay. These safety features are particularly prevalent in the US & EU market.

In the Netherlands, for example, when doctors prescribe medication for elderly patients or those with mental health conditions, they often specify, "please provide medication in pouches" on the prescription. Insurance companies will pay extra for this service because it enhances patient safety by packaging the medication in a convenient and error-reducing format.

As we now move into the age of artificial intelligence, I believe household robots equipped with cameras will further assist in monitoring whether patients are taking their medication. In collaboration with home dispensers, this technology could create a synergy that significantly improves medication adherence and enhances patient safety.

Established in 1977, JVM began by developing, producing, and selling pharmacy compounding equipment under the name Hyupshin Medical Equipment. Now, JVM has made significant strides in the development, manufacturing, and sales of hospital and pharmacy automation-related equipment and software. The evolution of your company from handmade packaging to semi-automated, and now fully automated systems, is remarkable. You are also dominating the market with a 90% market share in Korea and a strong presence in Europe and the US. What are the key factors that have contributed to this dominance, both domestically and internationally, compared to legacy brands?

The first key factor is our ability to customize software. For instance, with the leading company’s products, once the software is fixed, it's quite difficult to modify. However, upon our clients' requests, we can easily customize our software to meet their specific needs and demands. The second factor is our agility in providing service. In the past, Japanese engineers had to travel to provide support, which took a considerable amount of time. We, on the other hand, can quickly address malfunctions or defects for our clients. The third factor is definitely our price competitiveness.

In the international market, a crucial advantage is our full compliance with GMP standards, particularly in cleaning and dispensing. Another important factor is our global network of well-established agencies, which handle direct sales in their respective regions. These agencies have a strong track record and extensive sales experience, which helps drive our success abroad.

You mentioned three key advantages of your company, one of which is price competitiveness. When it comes to pharmacies or hospitals, they deal with large numbers of patients, which means handling vast quantities of prescription drugs with numerous different pills. Your ATDPS system can manage over 900 different types of pills and achieve 120 units per minute, which is very impressive. Can you explain more about the advantages of your product and how it helps hospitals and large pharmacies streamline processes and reduce waste in terms of time and money?

Our product, MENITH, is at the forefront of accelerating automation. It can process a maximum of 120 pouches per minute, which means that one MENITH unit performs the work of approximately 3.5 units from the previous generation. The earlier version required around four workers to operate, but now, one unit can be managed by just 1.5 people, drastically reducing labor involvement. There is growing demand for MENITH in the US and Europe, largely because labor costs in those regions are significantly higher than in Korea, with minimum wages about 2 times higher. This demand for automation aligns with the rise of Industry 4.0 in Germany, which emerged as a response to reducing high labor costs.

While pouch packaging is very common in Korea, in Europe and the US, more traditional methods like vials and blisters are still widely used. Have you developed machines that can handle all these different packaging types to meet the diverse needs of your customers, or do you customize solutions for each client?

Initially, we focused solely on manufacturing pouch-type equipment. However, we've now expanded our offerings to include blister packaging machines as well. We're aiming to become a comprehensive provider of various packaging types. Even within a single country, some clients prefer pouch packaging, while others may need blister or vial systems. To meet this demand, we’ve diversified our strategy to cater to not only pouch packaging but also blister and vial types. According to our research, in North America, vial packaging accounts for 90%, with blister and pouch types making up the remaining 10%. In Europe, box packaging dominates with an 80% share, while blister and pouch combined only account for around 20%. Similarly, in China, box packaging leads with 80%, and pouch packaging holds just 5%.

Pouch packaging is based on a "single take" concept, which is quite different from vial packaging. How do you ensure consistency in the quantity of medication across these different packaging types?

For example, if a patient is prescribed five pouches of medication, they would receive the same exact quantities if packaged in vials—five vials with the precise amount of medication. We maintain consistency in dosage regardless of the packaging type.

Medications are packaged according to prescriptions, with multiple doses prepared based on a single-dose (Single Take) standard. For example, if a patient needs to take medication three times a day for five days, we prepare a total of 15 individual doses (one per intake). The patient simply takes one dose at the prescribed time. This system reduces the effort required for patients to manage their medication while minimizing the risk of dosing errors.

Recently, you developed MENITH system and launched it in Europe, where it has been a great success, particularly in the Netherlands. You expect it to become a trendsetter and pioneer in fully automated dispenser equipment. What are your international expectations for MENITH, and how successful do you believe it will be? Which regions do you think will show the most interest in adopting this fully automated equipment?

I’m confident that MENITH will be most popular in North America and Europe, where labor costs are the highest. However, we are also seeing growing interest from other parts of the world, and we are currently in discussions with various regions.

Throughout your history, you've consistently focused on developing new technologies. Can you walk us through the innovations you're planning with the 380 patents you have pending? And could you share more about your R&D focus for the future?

All of our patent registrations are focused on advancing the speed and precision of automation, as well as ensuring the seamless integration of automation and AI. Our R&D efforts are centered around these three pillars to create fully automated and streamlined processes for pharmacies. Additionally, we’re exploring areas where human labor can be eliminated entirely, making operations fully unmanned. We have implemented AGVs (Automated Guided Vehicles) with barcode systems and automated inspection systems in our factory, and We were selected as a participant in the K-Smart Lighthouse Factory project in Korea two years ago.

The key factor in this recognition was our integration of AI into our processes. AI is crucial for boosting efficiency and productivity, which is why we’ve also embedded AI into our Vizen EX system.

You mentioned earlier that your internationalization strategy relies on partners who help localize offerings and attract new clients. Partners can be quite selective, especially regarding pricing and the need for rapid customization and responsiveness to their demands. Given that your factory is highly automated and employs advanced digital technologies, how do you ensure a swift response to your international partners? How competitive are you in meeting their needs, and how do you leverage your factory's capabilities to outperform Japanese or U.S. competitors?

This is certainly a common challenge for all players in the industry, as many must consider how to integrate AI into their systems to respond more effectively to client needs. However, the results depend on how well you have developed these AI and other innovative technologies. That's why we conduct field tests to showcase our technology to clients, building their confidence in our capabilities and demonstrating our competitive edge over industry peers.

Comparing the performance of different products is often difficult. For instance, while it's challenging to present exact error rates for our Vizen EX to customers, our technical specifications clearly indicate its speed advantage over competitors. Our Vizen EX is indeed faster than other products in the market, as highlighted in the specifications.

For more details, explore their website at: https://www.myjvm.com/en/index.php