Humedix Surpasses Annual Sales of 100 Billion KRW... Strong Growth in Core Business

2021 Consolidated Sales of 111 Billion KRW
12.7% Growth YoY
Expectations for Launch of PN Joint Injection and Heparin Sodium API
"This Year Marks the First Year of Leap with R&D Pipeline Results"

[Asia Economy Reporter Lee Gwan-joo] Humedix has entered the era of annual sales exceeding 100 billion KRW.

Humedix announced on the 7th that it achieved sales of 111 billion KRW based on consolidated financial statements for 2021, marking a 12.7% increase compared to the same period last year. Operating profit was 16 billion KRW, and net profit was 10.2 billion KRW, decreasing by 3.9% and 40.6%, respectively.

Based on separate financial statements, sales recorded 93.7 billion KRW, operating profit 12.2 billion KRW, and net profit 9.2 billion KRW, showing changes of 16.6%, 0.1%, and -30.5%, respectively. Operating profit based on EBITDA reached 23.7 billion KRW, a 7.2% increase from 22.1 billion KRW the previous year.

Humedix analyzed that last year’s sales growth was driven by continued increases in its core aesthetic business, along with successful performance in the contract manufacturing organization (CMO) business for ophthalmic solutions.

In the aesthetic business, the newly launched hyaluronic acid filler 'Revolline' successfully expanded its target to the MZ generation, leading to increased sales, while demand for the botulinum toxin ‘Liztox’ also grew, further boosting the upward trend. Additionally, the CMO business achieved sales growth through increased orders in the ophthalmic solution sector.

However, despite sales growth, the company explained that operating profit stagnation was due to costs associated with securing future growth engines, including depreciation expenses from facility investments in the CMO business such as ophthalmic solutions, increased labor costs from new hires, and higher research and development (R&D) expenses due to pipeline expansion. The decrease in net profit was attributed to the recognition of 2.1 billion KRW in convertible bond interest expenses without cash outflow, 2.1 billion KRW in convertible bond derivative valuation losses, 900 million KRW in equity method valuation losses, and 2.2 billion KRW in goodwill impairment losses of subsidiaries.

Subsidiary Huons Medical recorded annual sales of 19.5 billion KRW and operating profit of 3.9 billion KRW, representing changes of 3.2% and -8.2% compared to the previous year. The negative growth in operating profit was a temporary decline due to the suspension of the COVID-19 diagnostic kit OEM business. Excluding the diagnostic kit business, the company reported approximately 61% sales growth year-over-year. In its core medical device sector, products such as the Derma Shine series and extracorporeal shockwave therapy devices surpassed pre-COVID-19 performance, significantly reducing the decline in growth.

Humedix plans to designate this year as the inaugural year for growth momentum that has been prepared over a long period and accelerate its growth trajectory. The PN joint injection, a key R&D pipeline, is in the final stages of clinical trials, and entry into the heparin sodium active pharmaceutical ingredient (API) market is imminent. Through the development of heparin sodium API, Humedix aims to contribute to the localization of APIs and create a new competitive landscape in the heparin sodium API market, which currently relies heavily on Chinese imports.

New product launches will continue in the aesthetic business as well. The company plans to target the market by expanding the hyaluronic acid filler lineup (Elavie Premier and Revolline) and increasing the dosage options (50 units and 200 units) of the botulinum toxin (Liztox). Kim Jin-hwan, CEO of Humedix, stated, "Despite the challenging business environment, bold decisions and investments for the future allowed us to break through the 100 billion KRW annual sales mark and set a record high in sales during difficult times. We expect this year to be a year of great growth as the R&D pipelines we have prepared bear fruit, and we will make this the inaugural year of a leap forward."

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