Stock Price Down 28% This Year... Net Loss of 17.4 Billion KRW Last Year
Rising Exchange Rate Drives Up Production Costs
Bioneer’s stock price has been declining for consecutive days. Shareholders are voicing complaints as the hair loss cosmetic brand ‘CosmeRNA’ recorded sales below expectations.
According to the financial investment industry on the 5th, Bioneer’s stock price has fallen 28% since the beginning of this year. Considering that the KOSDAQ index rose 8.9% during the same period, the market-relative return is a disappointing -36.9 percentage points (P). The stock price hit an annual low of 13,490 KRW during intraday trading the previous day.
Last year, Bioneer recorded sales of 294 billion KRW, an operating loss of 13.5 billion KRW, and a net loss of 17.4 billion KRW. Although sales increased by 11.7% compared to the previous year, operating losses turned negative. The net loss also grew compared to the previous year.
Bioneer explained that accounting expenses of 11.3 billion KRW occurred due to the establishment of inventory asset reserves based on the lower of cost or market method. The sharp rise in the KRW-USD exchange rate, which increased the production cost ratio of ‘BieNalsin,’ was also cited as a cause of deteriorating profitability.
Bioneer operates molecular diagnostics and hair loss mitigation cosmetics businesses based on core technologies in gene research and therapy. Its subsidiary, S-Biome, sells the probiotic product ‘BieNalsin,’ which helps reduce body fat. BieNalsin is the first lactic acid bacteria in Korea to receive certification from the Ministry of Food and Drug Safety for its body fat reduction function. Its strain excellence and efficacy have been proven through international academic journals, leading to steady sales growth. It has also entered the Chinese probiotics market. On a consolidated basis, the probiotics segment accounts for more than 90% of sales. Bioneer invests the funds secured from probiotic product sales into new drug development.
The reason the stock price has retreated despite a stable growth strategy can be attributed to the underperformance of the hair loss symptom mitigation functional cosmetic ‘CosmeRNA,’ developed based on short interfering RNA (siRNA) gene technology.
Bioneer showed sharp stock price increases in the first half of 2021 and the first half of 2023. On September 2, 2021, the stock price reached 98,800 KRW, a 425% increase compared to the end of 2020. The stock price rise at that time was driven by expectations of approval from the Ministry of Food and Drug Safety for CosmeRNA. Bioneer introduced it as a ‘game changer’ in the hair loss market, claiming it could effectively alleviate hair loss symptoms with a simple once-weekly application method.
Sales were delayed due to approval issues with health authorities, and the stock price declined. In the first half of 2023, the stock price attempted a meaningful rebound, rising 157% from early 2023 to May 4. Expectations of full-scale sales of CosmeRNA on European Amazon and the company’s own online mall drove the stock price up.
Han-oh Park, CEO of Bioneer, stated at the end of 2022, “We plan to launch the hair loss symptom mitigation cosmetic ‘CosmeRNA’ in the European market in the first half of next year.” Following this, expectations revived, and the stock price rose. CosmeRNA, which received the highest grade ‘Excellent 5-Star’ for safety from the German Dermatest company, was expected to rapidly increase sales based on its safety and efficacy.
Since the 2023 peak, the stock price has fallen more than 80%. Although it has been about a year since full-scale sales began, sales have not met the high expectations. A financial investment industry official explained, “The delay in the domestic launch of CosmeRNA is causing the stock price to show a sluggish trend.”
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