[Click eStock] "Medytox, Filler Overseas Sales Drive Performance" Target Price Up

[Asia Economy Reporter Ji Yeon-jin] Shinhan Financial Investment announced on the 16th that it expects high growth in overseas sales of fillers for Medytox and raised the target price from the previous 160,000 KRW to 190,000 KRW.

The target price was calculated by summing Medytox's operating value of 664.6 billion KRW, the value of the new botulinum toxin product (MT10109L) in Phase 3 clinical trials at 497.3 billion KRW, and the overseas investment company equity value of 77.2 billion KRW. Researcher Lee Dong-geon of Shinhan Financial Investment said, "The current stock price does not reflect the value of the MT10109L pipeline," adding, "Considering the FDA BLA submission in Q1 2023, approval acquisition in 2024, and US launch in 2025, it is judged to be excessively undervalued."

Medytox reported consolidated sales of 49.8 billion KRW in Q2 this year, a 13.2% increase compared to the same period last year, and operating profit of 10.4 billion KRW, a 134.3% increase. This performance was driven by improved profitability due to the increased domestic sales proportion of Coretox, expanded exports of Neuronox (Medytoxine) to South America and CIS regions, and an increased sales proportion of the highly profitable 200-unit products.

Toxin sales amounted to 23.4 billion KRW, up 25.8%. Exports reached 13.4 billion KRW, a 94% increase year-on-year, attributed to sales growth in most export countries such as South America and CIS regions for Neuronox, and the expanded sales proportion of the higher-priced 200-unit products.

Annual sales and operating profit for this year are expected to increase by 3.9% and 6.3%, respectively, to 192 billion KRW and 36.7 billion KRW.

The researcher added, "In the second half of the year, as in Q2, toxin export growth is expected to continue, and high growth in overseas filler sales is anticipated based on the CE certification of new filler products," adding, "Medytox obtained CE certification for new filler products in the first half of the year and is expected to accelerate penetration into Europe and other countries accessible through CE certification. The growth in overseas filler sales is also expected to lead to improved profitability."