BioNia Dreaming of Becoming the 'Second Celltrion,' Hair Loss Treatment Without Erectile Dysfunction Concerns

Cosmerna to Launch in Europe Next Month... Expansion Expected After Initial Response
Estimated Sales of 1.8 Trillion KRW and Profit Margin Over 40% at Maximum Expansion
Chairman Park Han-o: "Goal of 100 Million Users Within 5 Years"

In the domestic stock market, interest is growing in 'Cosmerna,' a functional cosmetic product that alleviates hair loss symptoms and is set to enter the European market. The product has proven convenience and efficacy, and unlike existing hair loss treatments, it does not cause side effects such as erectile dysfunction, decreased libido, or edema, raising expectations for rapid sales growth after its launch.

According to the Korea Exchange on the 26th, Bioneer’s stock price has risen about 70% since the beginning of this year. After closing at 29,400 KRW at the end of last year, it has steadily increased, surpassing the 50,000 KRW mark.

Functional Hair Loss Cosmetic Without Erectile Dysfunction Side Effects Nears Launch

Bioneer is a biohealthcare company developing molecular diagnostics, probiotics, and RNA new drugs based on gene technology. The rise in Bioneer’s stock price this year is largely due to anticipation for Cosmerna, which is scheduled for release next month. Cosmerna is the world’s first functional cosmetic product to alleviate hair loss symptoms developed by Bioneer using ‘short interfering ribonucleic acid’ (siRNA) gene technology. It is differentiated by its proprietary platform technology, SAMiRNA. It works by degrading messenger RNA (mRNA) that carries genetic information to produce proteins related to hair loss. It is known to be highly effective against androgenetic alopecia, which accounts for a significant portion of hair loss cases.

Due to acquired factors such as excessive stress, irregular meals, and lack of sleep, the global population experiencing hair loss is steadily increasing. KB Securities forecasts that the global hair loss-related market size will reach approximately 40 trillion KRW next year. The domestic hair loss population is estimated at about 10 million, with a market size of around 4 trillion KRW.

The quality and safety of Cosmerna have been proven overseas. In July last year, it received the highest safety rating, ‘Excellent 5-STAR,’ from Dermatest in Germany. Dermatest is a globally accredited certification body that evaluates the safety and efficacy of products used on the skin. In December last year, Cosmerna was registered with the European Cosmetics Notification Portal (CPNP), and in January this year, with the UK Cosmetics Notification Portal (SCPN).

Bioneer conducted human application tests on 60 subjects for the domestic functional cosmetic registration process of Cosmerna. Compared to past clinical results of the existing oral hair loss treatment Propecia, Cosmerna showed superiority in convenience of use and side effects. It recorded a similar level of efficacy. In January this year, Bioneer received an efficacy evaluation report from Dermatest, and related research results are expected to be published in an international academic journal by the end of this year or early next year.

The current leading products in the hair loss treatment market are Merck’s Propecia and GSK’s Avodart. Current hair loss treatments require long-term use of 3 to 6 months or more and may cause side effects such as erectile dysfunction, decreased libido, edema, male breast cancer, depression, and liver dysfunction. Global pharmaceutical and bio companies are developing hair loss treatments that mitigate side effects, but these are still in early clinical stages and are expected to take considerable time before commercialization.

Cosmerna is applied topically to localized areas, achieving a response rate of 91% without side effects. KB Securities noted that Bioneer reduced costs through its own large-scale synthesizer, estimating Cosmerna’s margin to be about 45%. The product price is expected to be set at around 100,000 to 200,000 KRW for one month’s use. Some in the securities industry expect that if commercialized using the biweekly application method proven effective by Dermatest, rather than the once-a-week method used in domestic research, the product unit price could increase.

Cosmerna Aims for 100 Million Users... Expectations for the Birth of the 'Second Celltrion'

According to Bioneer, the current raw material production capacity allows for the manufacture of about 800,000 units of Cosmerna annually. This translates to sales of 80 billion to 160 billion KRW, based on a unit price of 100,000 to 200,000 KRW. Bioneer plans to expand production facilities to achieve economies of scale and reduce costs once sales fully commence. If 100 million users are secured within five years, sales could exceed several trillion KRW. Given the high profit margin, the speed of performance improvement can be inferred from early sales responses.

Regarding Bioneer’s plan to start selling Cosmerna in Europe next month, some compare it to the period when Celltrion supplied biosimilars to Europe. Although Cosmerna is a functional cosmetic rather than a therapeutic drug, its efficacy is similar to existing treatments and it has a high profit margin, resembling the early biosimilar market.

Celltrion achieved sales of 2.284 trillion KRW and operating profit of 647.2 billion KRW last year. In contrast, Bioneer recorded sales of 218.4 billion KRW and operating profit of 11.5 billion KRW. There is a significant scale difference when compared to Celltrion. However, considering the expected sales volume of Cosmerna, Bioneer could potentially catch up with Celltrion’s growth pace within five years.

Han-oh Park, Chairman of Bioneer, recently stated in a media interview, "We will introduce Cosmerna for the first time next month," adding, "Our goal is to secure more than 100 million users within five years." He continued, "Cosmerna, which has secured quality and safety, will be a game changer in the functional cosmetic market for alleviating hair loss symptoms," and "Along with sales in Europe, we will sequentially launch Cosmerna in other markets."

Based on current production capacity, the maximum expected operating profit from Cosmerna sales could reach 72 billion KRW. Kiwoom Securities has identified that Bioneer has the capacity to expand its factory site tenfold. Kim Hak-jun, a researcher at Kiwoom Securities, said, "If demand is confirmed to be high after initial sales, production capacity expansion will also be considered," adding, "Assuming expansion up to about ten times within the existing factory site, Bioneer could have facilities worth up to 1.8 trillion KRW." He further noted, "Expansion is expected to take about two months," and "Flexible facility increases are possible in response to demand growth."