[Click e-Stock] L&C Bio, a Company Restoring Youth... Chinese Sales Enter Full-Fledged Phase

On July 31, KB Securities analyzed that sales in China for L&C Bio are now entering a full-fledged phase.

L&C Bio is a company specializing in regenerative medicine for human tissues, manufacturing and selling tissue engineering therapeutic materials such as human tissue grafts, human tissue-based medical devices, as well as cosmeceuticals and pharmaceuticals. Its business divisions consist of human tissue grafts, human tissue-based medical devices, cosmeceuticals, pharmaceuticals, and others.

In the first quarter of this year on a consolidated basis, L&C Bio recorded sales of 17.8 billion KRW, a 7.4% increase compared to the previous year. However, the company posted an operating loss of 400 million KRW, turning to a deficit. This was affected by continued losses at its Chinese subsidiary, resulting in a deficit for two consecutive quarters. On a separate basis, the company reported sales of 14.6 billion KRW and operating profit of 1 billion KRW (operating profit margin of 7%), representing a 10.3% increase and a 33.2% decrease year-on-year, respectively. Kim Hyungyeom, a researcher at KB Securities, commented, "It is encouraging that sales continued to grow despite domestic medical policy conflicts."

L&C Bio has recently attracted attention by launching 'Ellabieri Duo', a next-generation skin booster that applies the world's first human acellular dermal matrix (hADM). In November last year, the company signed a licensing agreement with Huons Meditech for distribution to domestic dermatology and aesthetic clinics, thereby strengthening its distribution network.

Researcher Kim stated, "Huons Meditech has already established a solid sales network and a strong presence in the domestic aesthetic medical market through its filler and toxin products, so synergy between the two companies is expected." He added, "With this agreement, L&C Bio has secured a stable sales channel through B2B sales via Huons Meditech, and at the same time plans to expand its B2C sales by leveraging its own existing sales network."

The company's entry into the Chinese market is also accelerating. L&C Bio owns a GMP production line in Kunshan, China, with a total floor area of 7,100 pyeong. On January 21, its product 'Megaderm Plus' received import approval from the National Medical Products Administration (NMPA) of China, laying the groundwork for market entry.

He explained, "The market sizes targeted by L&C Bio for breast reconstruction and burns are estimated at 840 billion KRW and 3 trillion KRW, respectively, making the establishment of a local sales network most critical. This year, sales related to China are expected to reach between 10 billion and 20 billion KRW, so continued attention is needed."