[Special Stock] Bioneer, Starting Point of 1.8 Trillion Blockbuster... 'Hair Loss Solution' Without Erectile Dysfunction Side Effects

Bioneer is showing strong performance. Securities firms' analysis that the company will secure a new cash cow through a functional cosmetic product for hair loss relief based on short interfering RNA (siRNA) this year appears to be influencing the stock price.

As of 9:42 AM on the 5th, Bioneer is trading at 48,600 KRW, up 2.86% from the previous day.

After rising nearly 14% the day before, the upward trend continues.

Kiwoom Securities expects Bioneer’s growth potential to become visible through next-generation cosmeceuticals (a blend of cosmetics and pharmaceuticals).

Researcher Kim Hak-jun introduced, "The first product Bioneer will launch in the cosmeceutical field is Cosmerna," describing it as a "siRNA-based functional cosmetic for hair loss relief." He added, "Cosmerna was registered last quarter with the European Cosmetics Notification Portal (CPNP) and the UK Cosmetics Notification Portal (SCPN). The product is scheduled for full-scale sales starting in the first half of this year."

Researcher Kim explained, "Cosmerna is expected not to cause side effects such as erectile dysfunction, sexual dysfunction, swelling, headaches, or rashes, which are common with hair loss treatments." He continued, "Hair loss progresses when excessively secreted testosterone (male hormone) meets 5α-reductase and converts into dihydrotestosterone (DHT), which attacks dermal papilla cells. While hair loss drugs inhibit DHT production, Cosmerna uses siRNA to prevent DHT from binding to androgen receptors at the connection sites of dermal papilla cells." He emphasized, "This method promotes healthy hair regardless of hormones."

Cosmerna is scheduled to be sold this month through Bioneer’s online mall and Amazon Europe. He stated, "Assuming the unit price of the prepared initial stock of about 10,000 Cosmerna units is 300,000 KRW each, approximately 3 billion KRW worth will be sold as the initial batch."

Bioneer has completed contracts for finished product manufacturing and local logistics warehouse agreements for commercialization. Initial production and launch are expected as early as this month and no later than the first half of this year. Researcher Kim said, "We received an efficacy evaluation report from Dermatest in January," adding, "The related research results are expected to be published in an international academic journal between the end of this year and early next year," and noted, "Effectiveness was confirmed with biweekly use." Unlike previous domestic studies that used weekly application, commercialization is expected with the biweekly method proven effective by Dermatest. The unit price per product is expected to increase compared to before.

Researcher Kim analyzed, "Bioneer can produce 400,000 to 600,000 units annually," estimating the market size at 120 billion to 180 billion KRW considering the price. He added, "If high demand is confirmed after initial sales, production capacity expansion will also be considered."

Researcher Kim expressed expectations, stating, "Assuming expansion up to about 10 times the current factory site, Bioneer has the potential to possess production capacity worth up to 1.8 trillion KRW." He said, "It takes about two months to expand, so flexible facility increases in response to demand growth are possible."

He anticipated that as Cosmerna’s sales volume increases, profit margins will improve rapidly. Cost reductions in production will secure high profitability. Researcher Kim analyzed, "Last year, Bioneer developed its own large-scale synthesizer, reducing equipment investment costs to one-tenth," and added, "With the commercialization of the platform technology ‘SAMiRNA,’ the possibility of new drug development through SAMiRNA is also at an expectant stage."