[Market Focus] BlueMTech Rises on Expectations of Improved Performance from Wegovy Distribution

As of 9:20 a.m. on May 22, shares of BlueMTech, a company specializing in online distribution platforms for prescription drugs on the KOSDAQ market, were trading at 7,710 won, up 8.44% from the previous day's closing price. This increase appears to be driven by expectations that the company's performance will improve due to the domestic distribution of the obesity treatment Wegovy.

BlueMTech operates two pharmaceutical distribution platforms: 'BluePharmKorea' for hospitals and clinics, and 'KoolPharm' for pharmacies. The company also runs 'BlueDoc,' a recruitment platform for medical professionals.

Despite an increase in sales last year, BlueMTech turned to a loss due to rising platform investment costs. However, this year, expectations for improved performance are growing, driven by the expansion of its core vaccine distribution business as well as the impact of Wegovy.

According to BlueMTech's consolidated financial statements disclosed on May 15, first-quarter sales amounted to 34.2 billion won, with an operating loss of 830 million won. This represents an improvement in profitability compared to the previous quarter, which saw sales of 33 billion won and an operating loss of 3.3 billion won.

BlueMTech's main revenue source is vaccine distribution. Since starting with SK Bioscience's flu vaccine supply in 2019, the company has expanded its portfolio to include distribution rights for products from Sanofi, MSD, and others.

At the end of last year, BlueMTech was selected as a key domestic "dodomae" (primary wholesaler) for Novo Nordisk's obesity treatment Wegovy. Dodomae refers to a wholesaler that supplies products to other wholesalers in a general distribution structure. The company’s previous experience handling the domestic distribution of Novo Nordisk’s main obesity treatment, Saxenda, prior to the launch of Wegovy in 2021, was highly regarded.

Jung Yukyung, an analyst at Shin Young Securities, stated, "Wegovy distribution achieved sales of 6 billion won in April alone, representing 500% growth compared to 1 billion won in March. Having already surpassed 4.4 billion won in Saxenda sales in 2022, and with the peak season for obesity treatments typically falling in the second and third quarters during the summer holiday period, significant growth in performance is anticipated."

However, following a decision for a bonus issue in April, new shares are scheduled to be listed on May 30, raising concerns about a short-term overhang issue. The total number of issued shares is expected to surge from approximately 11.17 million to 33.51 million.