Chong Kun Dang and GC Green Cross Join the Market
Following Daewoong, Hugel, and Medytox
Domestic pharmaceutical and biotech companies are fervently entering the botulinum toxin (commonly known as Botox) market. This is due to the rapidly expanding market driven by increasing global demand for cosmetic procedures.
According to the pharmaceutical and biotech industry on the 21st, following Daewoong Pharmaceutical, Hugel, and Medytox, which had already entered the botulinum toxin market, companies such as Chong Kun Dang, GC Green Cross, Huons, and PharmaResearch have newly entered the market, bringing the total number of companies with domestic product approvals to 13. With Hugel and Medytox preparing to complete large-scale new factories this year, it is estimated that the domestic companies' botulinum toxin production capacity will easily exceed 50 million vials (glass containers for injections) annually.
Although there is still a lack of precise data comparing production capacities with overseas companies, if the current trend continues, it is expected that Korean companies could achieve world-class production capacity within a few years. This outlook is based on the possibility of cracks forming in the established market dominance held by companies such as AbbVie (Allergan) in the U.S., Ipsen in France, and Merz in Germany.
Demand for medical aesthetics products such as botulinum toxin and fillers is significantly increasing overseas. According to a QY Research report, the global botulinum toxin market size was approximately $7.084 billion (about 10.1619 trillion KRW) in 2022 and is expected to grow at an average annual rate of over 8.2%, reaching $11.383 billion (about 16.3289 trillion KRW) by 2028. In particular, interest in 'K-Beauty' is rising, leading to increased attention on domestically produced products.
Domestic companies are accelerating their global expansion. On the 14th, Daewoong Pharmaceutical signed an export contract worth 180 billion KRW with its local Brazilian partner Moksha8. The contract period is five years, representing a tenfold increase compared to the first export contract of 18 billion KRW signed with Moksha8 in 2018.
Hugel (left) obtained botulinum toxin product approval in the United Arab Emirates. The botulinum toxin product 'Botulax,' which received approval in the U.S. last February, is scheduled for release in the first half of this year. Hugel aims to achieve a 10% market share in the medical aesthetic market within three years.
GC Green Cross, which recently entered this market, is targeting overseas markets rather than domestic ones. By acquiring InnoBio, which has long-term supply contracts with seven countries worldwide, it plans to expand into China and Brazil. InnoBio also has GMP production facilities capable of obtaining approvals from the FDA (U.S. Food and Drug Administration) and EMA (European Medicines Agency).
Botulinum toxin is produced from the Clostridium botulinum bacterium. This bacterium is an extremely potent toxin capable of killing millions of people with just 1 gram. Botulinum toxin preparations contain an extremely small amount, about 1 nanogram (one-billionth of a gram), which blocks the release of neurotransmitters that cause muscle contraction, resulting in the targeted muscles being relaxed. This principle is used to achieve effects such as wrinkle improvement. From a business perspective, securing only a minute amount of the bacterial strain allows for cultivation and mass production. The operating profit margin for domestic companies' botulinum toxin businesses is around 30-40%.
Minyong Eom, a researcher at Shinhan Investment Corp., stated, "AbbVie and others monopolized the botulinum toxin market for 20 years, but in the past three years, price increases have caused customers to leave, leading to a decline in growth rates. If domestic companies secure recognition and production capacity based on price competitiveness overseas, rapid growth could be possible."
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