[Click eStock] "Medytox, Wrinkles Deepen Further"

[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities maintained a neutral investment opinion, anticipating that Medytox's operating losses due to the suspension of toxin product sales will continue this year.

Medytox is expected to face large-scale operating losses in the fourth quarter following the third quarter of last year. Sales are projected to drop 52% year-on-year to 28 billion KRW, significantly below market expectations. This is because its main products, Medytoxyn, Coretox, and Innotox, are all currently at risk of having their product approvals revoked, and a sharp decline in market share in the domestic market is expected due to brand image deterioration. Additionally, there are concerns that not only filler sales, which are sold alongside the toxins, but also exports could be adversely affected.

As a result, the operating loss of 11.4 billion KRW in the third quarter is estimated to widen to 13.7 billion KRW in the fourth quarter. This year's performance is also expected to shrink, with sales decreasing by 26% from last year to 103.5 billion KRW and operating losses narrowing to 20.8 billion KRW.

However, Innotox, which is being developed in collaboration with the multinational pharmaceutical company Allergan, has completed Phase 3 clinical trials and aims to submit a Biologics License Application (BLA) in the second half of this year, with a U.S. market launch planned for the second half of next year, potentially serving as a momentum for a performance turnaround.

Jin Hong-guk, an analyst at Korea Investment & Securities, stated, "For a meaningful rebound in the stock price, the uncertainty regarding the sales ban must be resolved, or the launch of new products such as Innotox and Neuronox, which have completed R&D, must become visible, accompanied by strong expectations for a future performance turnaround."

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