[IPO] InnoGene Targets Duty-Free Shops and Home Shopping with 'Hair Loss Shampoo' Recognized by Doctors

[Asia Economy Reporter Jang Hyowon] Anti-aging bio-specialized company InnoGene is knocking on the door of KOSDAQ. After listing, InnoGene plans to sell its hair loss products, which have been recognized as the main sales items in hospitals and clinics, through duty-free shops and home shopping channels as well.

On the 6th, CEO Lee Kwanghoon of InnoGene held a press conference in Yeouido, Seoul, ahead of the KOSDAQ transfer listing to introduce the business vision.

InnoGene is an anti-aging solution specialized company based on hair loss and skin/beauty care technology, and it is the only company in Korea that possesses a total solution for hair loss treatment.

Lee Kwang-hoon, CEO of InnoGene, is introducing the company at a press conference held on the 6th in Yeouido, Seoul, for the KOSDAQ transfer listing. / Photo by InnoGene

Since its establishment in 2005, it has continuously launched brands and currently operates four brands: Ballvic, Dr.Medicean, Follicution, and Re:Cellby.

InnoGene’s main sales channels are hospitals and clinics, not marts or stores. Its hair loss specialized brand Ballvic is currently supplied to over 4,400 hospitals and clinics nationwide. Because the products are directly recommended by doctors at hospitals, they are differentiated from general hair loss shampoos.

Although the brand has lower recognition among general consumers compared to competitors using high-priced models, it is explained that the safety and reliability are superior to other brands because it is a product recommended by doctors.

In fact, InnoGene achieves high profitability with an operating profit margin reaching 25%. As of 2021, InnoGene’s sales and operating profit were 9.4 billion KRW and 2.4 billion KRW, respectively. This is attributed to minimizing excessive advertising expenditures and commission payments, focusing solely on product capabilities.

A company official said, “We did not aim for short-term profits through high-priced marketing but focused on enhancing product competitiveness. Marketing was also conducted by introducing products at doctors’ academic conferences rather than TV or advertisements, steadily building brand awareness over 18 years.”

Sales have been steadily growing. Sales were 5.6 billion KRW in 2019, grew to 7.2 billion KRW after listing on KONEX in 2020, and reached 9.4 billion KRW in 2021. Sales for the first three quarters of last year were 6.9 billion KRW, similar to the previous year, which is explained as an impact of COVID-19.

InnoGene’s cautious business approach is also reflected in its financial structure. Through continuous profit realization, InnoGene has maintained debt-free management since December 2020. Operating without external borrowings, it has established a solid financial structure. As of the third quarter of last year, the debt ratio was stable at 18.7%.

After listing on KOSDAQ, InnoGene plans to expand its business by strengthening core anti-aging technologies, diversifying distribution channels, and expanding brands.

Currently, InnoGene holds 14 patents for its proprietary technologies and is also conducting government projects based on core anti-aging technologies. Through national projects, it aims to continue launching new products by securing unique technologies such as discovering hair loss mitigation substances.

Additionally, it plans to expand offline distribution channels centered on key domestic hospital and clinic clients, and to increase sales through marketing efforts via online channels including its own mall and open markets.

Since its product quality is recognized in overseas markets as well, it plans to expand duty-free shop entry channels to increase overseas customer contact points and accelerate brand awareness and external growth through home shopping entry. Furthermore, it is expected that sales growth will be greater when exports to countries such as China, which were delayed due to COVID-19, begin in earnest.

CEO Lee Kwanghoon stated, “Based on our core anti-aging technologies and product planning capabilities, we will expand our business beyond hair loss treatment specialization to the skin beauty sector and lead the global anti-aging field.”

Meanwhile, the total number of shares offered by InnoGene is 2.6 million, with a desired public offering price of 2,500 to 3,000 KRW per share. Demand forecasting will be conducted until the 7th to finalize the offering price, followed by subscription on the 9th and 10th. The company is scheduled to be listed on the KOSDAQ market on the 20th, with IBK Investment & Securities as the lead underwriter.