Huons Global Bets on China Hutox Exports to Revive Earnings as Korean Toxin Makers Expand Overseas
核心洞察
Huons Global (搜索)'s first-half operating profit fell 43.6% to 28.7 billion won, weighed down by one-off costs and the absence of U.S. injectable exports, with earnings recovery expected in the second half.
Hutox, a botulinum toxin made by subsidiary Huons BioPharma (搜索), won China NMPA approval in January and began local sales in July through partner Imeik, which has a network of about 7,000 clinics.
Sangsangininvestment&Securities projects Hutox China exports to approach 10 billion won this year, with potential to more than double by 2028 if additional production facilities gain NMPA approval.
Huons Global (搜索) is positioning its botulinum toxin product Hutox as a key earnings driver in the second half of the year, as sales in China begin in earnest following regulatory approval. The company's consolidated first-half revenue reached 411.1 billion won, down 0.2% year-over-year, while operating profit fell 43.6% to 28.7 billion won, according to Sangsangininvestment&Securities.
The earnings decline reflected the end of the continuous glucose monitoring business at key subsidiary Huons and the absence of injectable exports to the U.S., which weighed on revenue, while one-off costs incurred in winding down those businesses dragged on profitability. Still, operations at subsidiaries Huons and Humedix improved in the second quarter from the first, and with one-off costs easing, earnings are expected to recover in the second half.
Hutox China Expansion as the Key Growth Variable
Hutox exports to China are seen as the key variable for the second-half improvement. Imeik, Huons BioPharma (搜索)'s Chinese partner, won product approval for Hutox from China's National Medical Products Administration (NMPA) in January and began local sales in July. Imeik is known to have built a partnership network with about 7,000 plastic surgery and dermatology clinics across China.
Sangsangininvestment&Securities projected Huons BioPharma (搜索)'s Hutox exports to China would approach 10 billion won this year. Domestic sales are declining amid intensifying competition among botulinum toxin makers, but overseas exports continue to grow, led by the Middle East, Southeast Asia, Eastern Europe and South America. Hutox is currently exported to 17 countries, including Thailand and Singapore.
The Chinese market also has significant room to grow. Sangsangininvestment&Securities estimated China's botulinum toxin consumption market, combining the officially approved market and the unofficial market, at about 2.5 trillion to 3.5 trillion won as of last year. About seven products, including Hutox, are understood to have won formal approval in China. Among Korean companies, Hugel (搜索) is estimated to have secured a roughly 10% to 15% share of the local market with Letybo (搜索).
Production Capacity Expansion
Huons BioPharma (搜索) is also expanding its production base to meet growing Chinese demand. Adding a third plant with capacity of 7.2 million vials to the 6.48 million vials a year at its existing first and second plants, the company has secured total capacity of 13.68 million vials.
Ha Tae-ki, an analyst at Sangsangininvestment&Securities, said that if additional production facilities win NMPA approval in China, exports to China have the potential to grow to more than double current estimates by 2028.
Korean Toxin Makers Sustain Overseas Growth
The broader South Korean botulinum toxin sector is sustaining its growth trajectory, buoyed by expanding overseas sales. According to industry data, the combined second-quarter toxin revenue of Daewoong Pharmaceutical (搜索), Hugel (搜索), and Medytox (搜索) reached 225.9 billion won (approximately $159.5 million).
Sales of Daewoong's toxin product Nabota hit 103.4 billion won (approximately $73.0 million), surging 48.1% year-over-year and breaching the 100 billion won quarterly mark for the first time. Hugel (搜索) and Medytox (搜索) recorded toxin sales of 84 billion won (approximately $59.3 million) and 38.5 billion won (approximately $27.2 million), representing increases of 37.2% and 8.5%, respectively.
Overseas markets were the primary driver of this revenue growth. Daewoong's overseas toxin sales in the second quarter reached 94.1 billion won (approximately $66.4 million), a 54.2% increase year-over-year, with international sales now accounting for 91% of total Nabota revenue. Hugel (搜索)'s overseas toxin sales jumped 51% to 63.5 billion won (approximately $44.8 million), representing 76% of its total toxin revenue. Medytox (搜索) generated 21.3 billion won (approximately $15.0 million) in overseas toxin sales, up 15.1% from the previous year and accounting for 55% of its total toxin revenue.
Daewoong Pharmaceutical (搜索) is expanding its sales territories through local partners. In the United States, the company is scaling its Nabota business via Evolus, while in the Middle East it has launched products in the UAE, Saudi Arabia, Qatar, Turkey, and Egypt, and secured export contracts and product approvals in Iraq and Bahrain. To meet rising global demand, the company is also expanding its production base, with construction of Nabota Plant 3 complete and full-scale operations targeted for 2027. A Daewoong Pharmaceutical official stated, "We will continue our growth through global market expansion in the second half of this year," adding, "We are focusing on market expansion with the goal of achieving 500 billion won (approximately $352.9 million) in Nabota revenue by 2030."
Hugel (搜索) is intensifying its direct sales efforts in the U.S., planning to fully implement a "hybrid sales strategy" utilizing partner company Veneb and its own sales force starting in the second half of this year. The company has set a U.S. market share target of 10% by 2028 and 14% by 2030.
Medytox (搜索) is expanding in existing export markets such as Brazil, Thailand, and Saudi Arabia while preparing to enter the United States, the world's largest toxin market. The company is currently in the final stages of supplementary work to resubmit its Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA). A Medytox official stated, "We are in the final stages of supplementary work to enhance the completeness of documentation to meet global regulatory standards," but added, "It is difficult to confirm a specific submission timeline at this point."
Diversification Toward a Total Aesthetics Portfolio
Major South Korean aesthetics companies are accelerating the construction of a "total aesthetics portfolio" encompassing fillers, derma cosmetics, and health functional foods, moving away from traditional business structures reliant on single flagship products like botulinum toxin or skin boosters. An industry insider commented, "Companies with more diversified product lineups will be better positioned to gain an advantage in negotiations with local distribution networks."