Korea's No.1 Botox Company Hugel Acquired by GS Group for 1.7 Trillion Won... Accelerating Global Expansion (Comprehensive)

[Asia Economy Reporter Seo So-jeong] The GS Group consortium has acquired Hugel, the leading domestic botulinum toxin (Botox) company, for 1.7 trillion KRW. Hugel holds a dominant position in the domestic Botox market, and with GS Group actively strengthening its bio-business capabilities recently, it is expected to create synergy for global expansion, including into China.

On the 25th, Hugel announced that its largest shareholder, 'LIDAC' (Leguh Issuer Designated Activity Company), signed a share purchase agreement involving a change of the largest shareholder with GS Group’s multinational consortium (APHRODITE ACQUISITION HOLDINGS). The purchase price for a total of 6,156,932 shares (46.9% of total issued shares), including 801,281 convertible shares, is approximately 1.7 trillion KRW.

The GS Group multinational consortium consists of a special purpose company (SPC) jointly invested by GS Group and domestic private equity firm IMM Investment, Asia healthcare-focused investment fund CBC Group, and Middle Eastern sovereign wealth fund Mubadala, with CBC Group as the largest shareholder.

A Hugel representative said, "We expect to create organic synergy with GS Group, which is developing various bio businesses, IMM Investment with successful cases in healthcare, as well as CBC Group, Asia’s largest bio and healthcare-focused investment fund, and Mubadala."

Active Push into China... Accelerating Entry into the Global Medical Aesthetic Market

With GS Group acquiring Hugel, acceleration is expected in entering the global medical aesthetic market, including China.

LIDAC invested about 930 billion KRW in 2017 to acquire management rights of Hugel, which was then led by Dongyang H.C. as the largest shareholder. Since the change of the largest shareholder, Hugel has maintained stable growth by securing the number one market share domestically. It also secured competitiveness in the domestic HA filler market, achieving the top market share in 2019.

Hugel, which sells botulinum toxin in 28 countries including Southeast Asia and Latin America, is focusing most on the Chinese market. Last year, it became the fourth company worldwide and the first Korean company to enter the Chinese botulinum toxin market, gaining a first-mover advantage. The Chinese botulinum toxin market is expected to reach 1.75 trillion KRW by 2025.

Industry insiders expect that with the GS Group consortium’s acquisition of Hugel, not only will domestic market share be strengthened, but global expansion will gain further momentum. By actively utilizing the overseas networks of GS Group and other investors, they can accelerate product approvals and expand sales networks, thereby strengthening their global presence.

A Hugel representative said, "Product approval in the European and U.S. markets is likely this year and next year, respectively," adding, "HA fillers are also rapidly expanding sales in markets such as Europe and Latin America, further enhancing our competitiveness as a medical aesthetic company in the global market."

Domestically, Hugel is further strengthening its position amid competitors’ setbacks. Medytox has faced difficulties due to quality issues, and while Medytox and Daewoong Pharmaceutical have been engaged in a prolonged legal battle over the source of botulinum toxin strains, Hugel has maintained its lead since 2016.

An industry official said, "Since GS Group is entering the bio business for the first time through the acquisition of Hugel, it is highly likely that they will provide active support going forward," and added, "We expect synergy in expanding global market share, including in China, Europe, and the U.S."