My Role Shines Brightly... Strong Performance of 3 K-Botox Companies

Botulinum Toxin Sales Growth Drives Increase
Expansion of Indications for Therapeutic Use Accelerates

[Asia Economy Reporter Kim Young-won] The three leading domestic botulinum toxin (BTX) companies with high market shares?Hugel, Medytox, and Daewoong Pharmaceutical?showed solid performance in the third quarter, driven by expanded BTX exports. To increase their share in the global market, the three companies are also seeking to expand indications for therapeutic use.

According to the Korea Exchange on the 16th, Hugel's consolidated sales for the third quarter of this year reached KRW 70.677 billion, with an operating profit of KRW 24.769 billion. These figures represent increases of 35.0% and 18.3%, respectively, compared to the same period last year, marking the highest performance in the company's history. Hugel stated that sales of its flagship product, 'Botulax,' increased by approximately 67% year-on-year, supported by the easing of lockdowns in the Chinese market and growth in South American regions such as Brazil. The increase in BTX sales across various global markets drove the strong performance.

Daewoong Pharmaceutical also surpassed KRW 300 billion in quarterly sales for the first time ever, recording KRW 301.469 billion in the third quarter. This represents a 13.7% growth compared to the same period last year. Daewoong Pharmaceutical attributed the sales growth to expanded exports of its BTX product 'Nabota' and favorable exchange rate effects. Nabota's export revenue this year reached KRW 32.6 billion, more than doubling from KRW 14.2 billion in the same period last year.

Medytox's sales for the third quarter of this year amounted to KRW 53.312 billion, surpassing KRW 50 billion for the first time in 11 quarters since the fourth quarter of 2019. Medytox's performance had been subdued since 2019 due to lawsuits concerning botulinum toxin strains with Daewoong Pharmaceutical and litigation responding to the Ministry of Food and Drug Safety's cancellation of botulinum toxin product approvals. Medytox believes that the recovery of BTX sales to pre-2020 levels is reflected in this recent performance.

With exports to global markets such as the United States, Europe, and Southeast Asia driving sales, the three companies are expanding therapeutic indications for BTX. While the domestic market is predominantly composed of aesthetic BTX, the proportion of therapeutic BTX is higher in the global market. According to Dadal Research, the global BTX market size is USD 5.9 billion (approximately KRW 7.76 trillion), with the therapeutic market accounting for about 54.2%, or USD 3.2 billion (approximately KRW 4.2112 trillion).

Hugel's Botulax, which has secured indications for post-stroke upper limb spasticity and pediatric cerebral palsy equinus deformity, has completed Phase 1 clinical trials for overactive bladder and cervical dystonia indications. It has also completed Phase 2 clinical trials for benign masseter hypertrophy (square jaw). Medytox has completed Phase 3 clinical trials in China for essential blepharospasm and submitted approval applications for 'Medytoxine,' which holds indications for cervical dystonia and post-stroke upper limb spasticity. Daewoong Pharmaceutical is conducting Phase 2 clinical trials to expand Nabota's indications to episodic migraine.

An industry insider said, "Since BTX ultimately requires developing various indications with a single product, having many therapeutic and aesthetic indications increases its value," adding, "(Expanding indications) will be beneficial both in the global market and domestically."