[THE INVESTOR] Medytox is being re-evaluated for its potential in China, said Korea Investment and Securities on Feb. 5, maintaining a “buy” recommendation and raising the target price to 750,000 won (US$688.77) from 590,000 won.
It is the only Korean botulinum toxin maker that has completed the third phase of clinical trials in China, and is planning to seek approval from CFDA soon, according to analyst Jin Hong-guk who estimated the Chinese pipeline worth 1.14 trillion won.
In terms of profitability it is better for the company to partner with Bloomage and enter China than expanding to the US with Allergan, the global market leader, according to the analyst. This is because it can also sell its fillers to the Chinese partner, who has the second-largest share in filler market in the country, explained Jin.
Medytox will also further cement its position as the market leader in Korea, forecast the analyst. It has already begun to lower the price of its botulinum toxin products to discourage late entries in the market and it is unlikely that they will be able to lower their prices for the time being, and instead they will concentrate on expanding exports, said Jin.
By Hwang You-mee (email@example.com)