If Semiconductor Stress Is Aging Your Skin, Look Up to 'Rejuran' [Weekend Money]

PharmaResearch Shifts Growth Engine to Exports
Rejuran's Global Expansion Gains Momentum
Second Quarter Operating Profit Expected to Reach 70 Billion Won
Benefits from Medical Tourism and U.S. Sephora Launch Reflected

PharmaResearch is accelerating its expansion into overseas markets based on the competitive edge it has built in the domestic Rejuran market. While domestic growth continues thanks to the revitalization of medical tourism, the company is securing new growth drivers as exports of Rejuran medical devices increase in Japan and Europe, and its cosmetics business expands its sales channels to the United States and Eastern Europe.

Samsung Securities predicted that PharmaResearch's sales in the second quarter of this year will reach 172.5 billion won, marking a 22.6% increase from the same period last year, while operating profit is expected to come in at 70 billion won, up 25.3%, surpassing market expectations. Accordingly, the brokerage maintained its 'Buy' investment rating and raised its target price to 420,000 won from its previous level.

Donghee Jung, a researcher at Samsung Securities, analyzed, "With robust medical tourism and the impact of marketing efforts, PharmaResearch continues to defend its market share in the domestic Rejuran market, while the growth in exports of medical devices and cosmetics is driving performance."

PharmaResearch's domestic medical device business, which is the foundation of its existing growth, is seeing significant benefits from an increase in foreign patients. As more foreign tourists visit dermatology clinics, the demand for Rejuran procedures has also increased. Indeed, spending by foreigners on dermatology in the second quarter of this year is estimated at approximately 428 billion won, up 39% from the same period last year.

Accordingly, PharmaResearch's domestic medical device sales are expected to rise by 5% year-on-year to 63.7 billion won. Although competition is intensifying in the domestic aesthetics market, the company is expected to achieve stable growth by further expanding supply to hospital and clinic channels targeting foreign patients.

In exports, the expansion of the European market stands out. While the Japanese market shows signs of recovery, shipments of Rejuran medical devices to Western Europe have begun in earnest, and exports of medical devices in the second quarter of this year are projected at 32.9 billion won, a 35.5% increase compared to the same period last year.

In particular, the Western European region continues to place additional orders beyond the initial shipment volumes. PharmaResearch is estimated to have shipped approximately 3.4 million dollars' worth to Western Europe in the second quarter of this year, which is a substantial increase compared to 1.4 million dollars in the first quarter.

Researcher Jung explained, "In addition to steady growth in Asia and Eastern Europe, initial results are emerging in Western Europe, rapidly increasing exports' share. With the export ratio surpassing 40%, performance volatility is also expected to decrease."

The cosmetics business is also becoming a core pillar of overseas expansion. In the United States, the impact of being listed in Sephora at the end of March is expected to be fully reflected starting in the second quarter, and sales are also expected to benefit from the Amazon Prime Day event.

As a result, cosmetics export sales in the second quarter of this year are projected at 33.9 billion won, up 73.9% compared to the same period last year. Even in a quarter when event and marketing costs are concentrated, operating leverage from sales growth is expected to expand the operating margin to as much as 40.6%.

To strengthen its presence in the U.S. market, PharmaResearch has set up a local production system. On the 1st of this month, the company acquired a 100% stake in Cosmetic Group USA, a Los Angeles-based original equipment manufacturer (OEM) and original design manufacturer (ODM) of cosmetics, enabling the entire process from production to finished product for products sold in the United States to take place locally.

Previously, products were manufactured in Korea and shipped to the United States, but by producing locally, logistics costs can be reduced and supply efficiency can be improved. The company plans to begin local production as early as the end of this year.

Researcher Jung stated, "The current gross margin in the cosmetics export segment is fairly high at around 60%. Once the transition to local production in the United States is complete, further improvement in profitability can be expected."

The launch of new medical devices is also considered a growth driver. PharmaResearch intends to take the competitiveness of its Rejuran business to the next level by introducing microneedle RF equipment in Korea this November. The company explains that by applying a dedicated injector designed to reduce residual loss for higher viscosity Rejuran products compared to conventional equipment, it can lower cost burdens for hospitals and clinics and improve procedural efficiency.

This content was produced with the assistance of AI translation services.