As the domestic skin booster market heats up again, L&C BIO's "Ellabie Ritwo" (Ritwo) is drawing attention. Industry watchers say Ritwo is likely to follow in the footsteps of PharmaResearch's skin-beauty injectable "Rejuran," which drove a surge in the company's share price. Thanks to that, L&C BIO's share price jumped 75% in September (1–19).
In particular, on 5th, after a dermatology clinic director posted news on social media of "Ritwo sold out," L&C BIO shares hit the upper limit (the top of the daily price limit band). Humedix, which co-developed Ritwo with L&C BIO and holds the domestic distribution rights for Ritwo, also rose 14% this month.
Skin boosters are injectables that directly deliver agents into the skin to improve moisture, elasticity, and regenerative capacity, offering a more natural effect than fillers, and demand has surged in recent years. According to global market research firm Grand View Research, the global skin booster market size is projected to reach $2.1 billion (about 2.9 trillion won) by 2030. Domestically, PharmaResearch, the developer of "Rejuran Healer" (Rejuran), is cited as the leading company.
Ritwo is a high-concentration hyaluronic acid (HA)-based skin booster known to deliver immediate skin tone improvement with a single treatment. The duration lasts about 3–6 months, which is relatively short. The price is in the 600,000–700,000 won range per session (5 cc), which is pricier than Rejuran (in the 400,000 won range for 4 cc).
Despite the high price, Ritwo has become known as a premium procedure, and since its launch in Nov. last year, the domestic client base has surpassed 1,000, showing a heated response. The company expects clients to exceed 2,000 by the end of this year, and it is also developing a medical device version of Ritwo.
securities firms also say L&C BIO's earnings and share-price trend resemble PharmaResearch's early growth stage. Eugene Securities set L&C BIO's price-to-earnings ratio (PER) at 25 times, applying a 10% premium to PharmaResearch's 2019 average multiple, and presented a target price of 68,000 won.
Lee Chae-eun, a researcher at Eugene Securities, said, "We set the target multiple by adding 10% to PharmaResearch's average multiple in 2019, when it entered a sales growth phase in the medical device sector," and noted, "With domestic demand for skin boosters, demand from tourists, and the full-fledged push overseas, we see the start of a second skin booster market takeoff."
In the domestic skin booster market, a representative product is Rejuran. Using polynucleotide (PN), a biocompatible substance extracted from salmon DNA, the improvement appears over several weeks to months rather than immediately after the procedure.
PharmaResearch, led by Rejuran, posted record earnings for 11 consecutive quarters through the second quarter this year, at one point climbing to No. 3 in KOSDAQ market capitalization. There were issues with a proposed and then withdrawn spin-off in Jun.–Jul., but the share price rose about 160% through last month this year. The current average target price among the securities industry is 795,833 won. However, in this month (1–19), PharmaResearch shares paused for breath and fell 14% (680,000 won → 597,000 won).
This year, L&C BIO's revenue is estimated at 88.5 billion won, up 23% from a year earlier, with operating profit at 700 million won, down 72%. Starting next year, revenue is projected at 112.5 billion won with operating profit of 12.5 billion won, signaling a full-fledged earnings uptrend.
However, weak results at the China subsidiary (L&C China) are a risk. As losses continued at the China unit, L&C BIO posted an operating loss of 400 million won in the first half of this year despite higher revenue.
Heo Sung-gyu, senior researcher at Shinhan Investment & Securities, said, "Considering the size of losses at the subsidiary, we expect a turnaround to profit starting next year," and added, "Ritwo is expected next year, while full-fledged revenue growth at the China subsidiary is forecast two years later, so it is necessary to approach somewhat gradually."