Korean botulinum toxin maker Hugel
, recently acquired by Bain Capital, is expected to post record-high operating profit in 10 quarters amid strong sales, according to a local securities firm on July 17.
“Strong botulinum toxin export growth has been sustained in the second quarter, especially in Latin America and Northeast Asia,” said Ku Wan-sung, an analyst at NH Investment & Securities.
He estimated the sales of Botulax, Hugel’s flagship toxin product, will reach 26.2 billion won (US$23.24 million) in the April-June period, up 82.9 percent from a year earlier.
“Export to Russia, which commenced in February, are also growing steadily,” Ku said.
Its operating profit is expected to hit a high of 27.8 billion won, up 69.8 percent on-year, backed by internal structural revamp led by the new largest shareholder -- US private equity firm Bain Capital. On July 14, Bain spent 454.7 billion won to acquire the Korean biotech firm.
Analysts here said Hugel’s planned entry in the US, which accounts for over 60 percent of the global botulinum toxin market, will further boost its earnings. It is expected to complete phase 3 clinical trials of Botulax in the US by the year-end.
Considering Bain’s strong US presence, Hugel is highly likely to enter a partnership with a major pharmaceutical player there to export botulinum toxin and dermal filler products, according to Kevin Kim at Samsung Securities.
“It will strengthen its US distribution network by partnering with a big pharma player, establish subsidiaries and acquire distributors in key markets,” Kim said.
By Park Han-na (firstname.lastname@example.org