[Click eStock] Finally Obtained Sales Approval in China... Is the Heyday of Hugel Beginning?

First in Domestic Industry to Receive Approval for Botulinum Toxin Sales in China
Targeting Chinese Market with Retivo... Expected to Achieve 20% Market Share in 2024

[Asia Economy Reporter Minwoo Lee] Hugel has become the first domestic company to receive approval from Chinese authorities to sell botulinum toxin products. It is expected that the company’s "prime time" will begin as it starts to generate substantial performance.

On the 26th, Korea Investment & Securities maintained a "buy" rating on Hugel and raised the target price by 15% to 230,000 KRW. The previous closing price was 211,600 KRW. This reflects the anticipation of entering the Chinese market.

Earlier, on the 23rd, Hugel obtained sales approval for its botulinum toxin product "Letivo" from the National Medical Products Administration (NMPA) of China, becoming the first domestic company to do so. Sales and marketing will be handled by Sahuan Pharmaceutical, the third-largest pharmaceutical company in the Chinese hospital drug market, which has a distribution network of about 10,000 hospitals and medical institutions. Full-scale marketing is expected to begin in the first quarter of next year.

Korea Investment & Securities estimated the official toxin market in China to be 350 million USD (approximately 395 billion KRW). It is projected to reach 1.1 billion USD by 2026. Researcher Jin Hongguk of Korea Investment & Securities said, "Currently, the officially launched toxins in China are Allergan’s 'Botox' and Lanzhou Institute of Biological Products’ 'BTX-A,' and Ipsen’s 'Dysport' will be launched next year, making four companies competing." He added, "Letivo will target the market with a price higher than BTX-A but lower than Botox and Dysport."

Hugel is expected to smoothly expand its market share in China and increase operating profit by more than 33% year-on-year next year. Korea Investment & Securities assumed Letivo’s market share in China next year to be 3%, a 30% price discount compared to Allergan, and a delivery price at 40% of the sales price. Accordingly, Hugel’s sales in China next year are estimated at 4.5 billion KRW. Researcher Jin analyzed, "Competitors’ entry into China is also delayed, so Hugel’s market share expansion in China will be smooth for the time being," and "It is expected to achieve a 20% market share in 2024."

Meanwhile, operating profit for the third quarter of this year is expected to increase by 4% year-on-year to 18.9 billion KRW, in line with market consensus. Due to expanded domestic market share following competitors’ sales bans, easing of COVID-19, and export growth from entering the Chinese market, sales of 239.8 billion KRW and operating profit of 91.2 billion KRW are expected next year. These represent increases of 21% and 33%, respectively, compared to the same period last year.

This content was produced with the assistance of AI translation services.