DAOL Investment & Securities predicted on the 24th that PharmaResearch, a specialized aesthetic company, would see increased sales this year in the second quarter with the launch of its flagship product, Rejuran, in the European market. DAOL Investment & Securities maintained its investment opinion on PharmaResearch at 'Buy' and raised the target price from 330,000 won to 390,000 won, which is more than 35.4% higher than the previous trading day's price of 288,000 won, the highest among domestic securities firms.
Park Jong-hyun, a researcher at DAOL Investment & Securities, identified PharmaResearch as the leading company in the domestic skin booster market share and noted that it would benefit from the increase in medical tourists.
The researcher said, "Of the 13.48 million tourists who visited Korea last year, 10% utilized medical tourism," adding, "It is expected that this will increase to 4.4 million, six times the current level, by 2027." He further stated, "If domestic consumption and overseas local sales drove the growth of the cosmetic medical device industry, medical tourism will serve as a new growth engine."
The researcher explained that the core of medical tourism has shifted to dermatology, which is favorable for Rejuran, a medical device product that improves facial wrinkles. He also mentioned, "The proportion of online purchases of Rejuran in Korea is increasing, and there is not much inventory in dermatology clinics, so purchases are made every month," and, "There is no decrease in orders due to a worsening external environment."
The fact that Rejuran is set to launch in the European market from the second quarter is also positive for PharmaResearch. The researcher estimated PharmaResearch's sales and operating profit forecasts for this year at 449.1 billion won and 175.1 billion won, respectively, which are increases of 28% and 39% from the previous year.
PharmaResearch's stock price fluctuated recently due to concerns that it might transfer the Rejuran business to the newly established PharmaResearch Medicare, but it has been confirmed that it will only conduct consignment sales of pharmaceuticals and Conjuran, among other non-aesthetic products.
The researcher stated, "While PharmaResearch may streamline its operations and potentially sell off non-core business units in the medium to long term, it could enhance its valuation as a purely cosmetic medical device corporation."