Domestic Botox Shakes Off Setbacks, Spreads Wings Toward Global Market

[Asia Economy Reporter Lee Gwan-ju] Domestic 'botulinum toxin (Botox)' companies are overcoming various adversities such as government sanctions, legal disputes, and the spread of COVID-19, and are soaring again. Last year, the export value of botulinum toxin reached an all-time high, and with the industry's overseas market expansion accelerating, it is expected to show even more robust growth this year.

Botox Overcoming COVID-19 Adversities

According to the Korea Customs Service's export-import trade statistics on the 2nd, last year's botulinum toxin export value was the highest ever at $235.69 million. Botulinum toxin exports surged 55.9% from $143.98 million in 2018 to $224.40 million in 2019, then briefly stalled at $205.28 million in 2020 due to the spread of COVID-19. Last year's export value is interpreted as overcoming these COVID-19 adversities. An industry insider explained, "Although the overall trade market was depressed at the beginning of the COVID-19 outbreak, over time, with the spread of remote work, people had more leisure time to receive procedures, which increased demand."

The export results varied by country. Currently, the three major global botulinum toxin markets are the United States, China, and Europe. Last year's exports to the U.S. amounted to $31.3 million, more than doubling from $15.08 million the previous year. However, exports to China, where the market was first developed, decreased by about 10% from $111.75 million in 2020 to $94.51 million last year.

Hugel Accelerates European Market Entry This Year

Hugel, the top domestic botulinum toxin company, has experienced both heaven and hell. Hugel, which was accelerating its global market entry, faced a major obstacle last November when the Ministry of Food and Drug Safety announced the 'cancellation of product approval.' After a court injunction was granted, sales were able to resume. Despite adverse conditions, Hugel recorded its highest-ever sales last year. On a consolidated basis, sales reached 245.2 billion KRW, with half of that, 124.6 billion KRW, coming from botulinum toxin sales. Botulinum toxin sales increased by 13.8% compared to the previous year, with particularly notable growth in the Latin American region (129.7%).

Hugel Letibo.

Hugel is accelerating its entry into the European market this year. For the first time as a domestic company, it received a recommendation for product approval for Letibo from the Heads of Medicines Agencies (HMA) on the 25th of last month, and based on this, it has completed product approval procedures in two countries, France and Austria. The first shipment and launch are expected within the first quarter. A Hugel representative stated, "We plan to complete entry into 36 European countries by next year, based on entry into 11 major countries within this year."

Daewoong and Medytox Grow Despite Legal Disputes

Medytox and Daewoong Pharmaceutical, ranked second and third in the domestic botulinum toxin market, have been engaged in disputes since 2017. After the prosecution's decision of no charges against Daewoong Pharmaceutical last month, both companies issued statements sharpening their positions against each other. However, no additional legal actions such as new accusations have been reported. They appear to be focusing on ongoing civil lawsuits.

Despite this, both companies are showing growth. Daewoong Pharmaceutical recorded its highest-ever sales last year at 1.153 trillion KRW. Of this, sales of the botulinum toxin product Nabota amounted to 79.6 billion KRW, an increase of more than 55% compared to the previous year. Overseas sales also increased by more than 60%, with record-breaking quarterly performances in the U.S. Daewoong plans to expand its global presence, including completing the product approval application in China last December. A Daewoong representative said, "We are accelerating efforts to launch Nabota in Europe and China within this year." Medytox, which faced adversities such as the Ministry of Food and Drug Safety's product approval cancellation in 2020, is also making a comeback. It recorded consecutive profits in the second and third quarters last year, stabilizing operations, and the Phase 3 clinical trial of its next-generation botulinum toxin product 'MBA-P01' is reportedly progressing smoothly.

There is anticipation that once legal disputes are resolved this year, uncertainties will be eliminated, leading to further expansion into overseas markets. An industry insider commented, "Considering the ups and downs, the growth of domestic botulinum toxin has been remarkable," adding, "The key going forward will be how well they establish a solid foothold in the U.S., China, and Europe, which account for 80% of the global Botox market, as their entry into these markets becomes full-scale."

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