This year, the global pharmaceutical company Merz is marking its 117th anniversary and is leading the global aesthetics market. The company has directly entered 28 countries, including major European countries, the United States, Canada, and South Korea, with particularly rapid growth in South Korea.
Merz, founded in 1908, is a German pharmaceutical corporation that has expanded its base in treatments for the nervous system. Since launching the botulinum toxin "Xeomin" in 2005, it has focused intensively on the medical aesthetics business. Botulinum toxin is a protein extracted from the bacteria that cause food poisoning, which has the effect of paralyzing muscles to smooth wrinkles.
In particular, the medical device "Ulthera," which has become synonymous with heat energy-based aesthetics treatments, has recently driven the company's aesthetic business growth. Ulthera was the first ultrasound lifting device in the world to receive approval from the U.S. Food and Drug Administration (FDA) in 2009. It works by focusing high-intensity focused ultrasound (HIFU) energy on the skin to generate heat, coagulating and contracting tissues, thereby improving wrinkles and enhancing elasticity.
Merz entered the South Korean market in 2010. According to the company, Merz Aesthetics Korea's sales have steadily increased from approximately 8 billion won in 2014, and it is projected to reach annual sales of 300 billion won. In the past three years, the average annual sales growth rate has been around 50%, surpassing the group's overall growth rate and receiving evaluations for its outstanding achievements.
Yoo Soo-yeon, the CEO who has led Merz Aesthetics Korea since 2014, met last month at the company’s headquarters in Gangnam-gu, Seoul, and noted, "Since I joined in 2014, the company's management performance has grown every year," and that "from July 2024 to June 2025, annual sales are expected to increase by about 55% compared to the previous year, reaching about 300 billion won." He also mentioned that "the total number of employees, which was 40 at the time of my joining in 2014, has now increased to 160 and will soon reach 200."
◇"Changes in consumer trends since COVID-19"
According to Yoo, the growth rate of Merz Aesthetics Korea accelerated during the COVID-19 pandemic, which began in December 2019. He stated, "The first six months of COVID were chaotic with a decrease in sales, but afterwards, sales rebounded sharply, and the annual sales growth rate, which was about 30% before COVID, rose to over 50%."
Competition in the aesthetics market is becoming increasingly fierce. In the domestic botulinum toxin market alone, more than 15 products have been launched. As Ulthera gained massive popularity, many domestic lifting devices have also been released. Despite this, the company’s growth has expanded even further.
Regarding the background of this growth, Yoo analyzed that the changing consumer flow has also played a role. Just as the term "value for money" emerged in the COVID period, he noted that the tendency to prefer high-quality products, even when making a choice, has increased, leading more consumers to choose Merz products, which are premium brands.
Yoo stated, "Before COVID, many clinics emphasized cheap prices and mass treatments, but after that, hospitals that focus on premium treatments and long-term customer relationships increased, and during this process, Merz began to be recognized as a trusted partner." He added, "In terms of aesthetic skin treatments, while transitioning from low to high prices is possible, going back from high to low prices is not easy," indicating that it is not a temporary phenomenon.
Promotional marketing strategies aimed at this market have also been effective. A prime example is the Ulthera authentic product certification program. This is an app service that allows patients to verify whether they received genuine treatment through the QR code on the authentic sticker provided by the hospital after treatment. The app can also manage treatment schedules and accumulate points for additional benefits. In addition, they have strengthened clinical education for physicians and brand marketing for consumers.
◇"Investing 15-20% of sales in R&D... product strength is the most important"
Yoo noted, "The key to a corporation's growth lies above all in product competitiveness," adding that "Merz reinvests 15-20% of its annual sales in R&D." Merz has developed and launched a series of products, including Xeomin, Ulthera, the hyaluronic acid filler "Belotero," and the injection "Radiesse," which injects calcium hydroxyapatite (CaHA) into the skin, enhancing its market penetration.
To lead the market, a product must either be the first or differ from others. Yoo cited Ulthera and Xeomin as examples, stating, "Currently, there are various heat energy delivery medical devices, including HIFU devices, in the market, but Ulthera is the only product approved by the FDA. Its ability to verify the accurate delivery of heat to the previously invisible skin fascia layer using real-time ultrasound imaging distinguishes it from other products."
He added, "Furthermore, Xeomin is the first botulinum toxin product without complex proteins," stating that this feature minimizes the resistance issues that have risen as botulinum toxin treatments have become more popular. Many botulinum toxin products on the market contain complex proteins that do not influence the efficacy of the drug, and the medical community points out that these complex proteins are the root cause of botulinum toxin resistance.
Last year, Merz opened an additional R&D innovation center in Raleigh, USA, in addition to its existing R&D innovation center in Frankfurt, Germany. This step aims to strengthen R&D in the medical device sector. Yoo stated, "Given the significant sales proportion from the South Korean market, we are currently discussing clinical R&D with our global team," adding that "Dr. Samantha Kerr, the Chief Scientific Officer of Merz R&D, is scheduled to visit Korea in January." He also remarked, "Merz is currently conducting over 20 R&D projects," emphasizing that "R&D investment is the key to the continued growth of life science corporations."
Yoo graduated from the College of Pharmacy at Chung-Ang University and worked in the sales and marketing divisions of global corporations, including Janssen Korea and MSD Korea, before serving as the head of the over-the-counter pharmaceutical division at Novartis Korea from 2007 to 2014. He noted, "I began my professional career in the development department of a pharmaceutical company, but I found marketing to be more suited to my strengths," explaining, "I was drawn to marketing that meets customer needs and provides satisfaction, and I built my career by starting from sales, meeting and communicating with customers on the front lines."
Some in the investment market argue that the aesthetics medical market is already saturated, making high growth difficult. In response to this perspective, Yoo countered, "The medical aesthetics market has infinite potential," stressing that "the desire to look young and beautiful will never disappear, even in an aging society," and added that "medical aesthetics is a field that needs to combine science and art. It will continue to evolve along with advancements in science."
Yoo stated, "A new product is scheduled to be launched in January," predicting that "2025 will be a dynamic year with many new products coming out." He also mentioned plans to focus on new products and to continue ESG (environmental, social, governance) management activities in the new year.
Last year, Merz was the first in the aesthetic industry to enter the Sustainable Development Goal Management Index (SDGBI). Yoo commented, "As a leading company in the global aesthetics industry, Merz feels a great sense of responsibility towards ESG activities," adding, "In South Korea, we will continue to practice various activities, such as the Ulthera ESG-certified hospital campaign, safety management of discarded medical devices, and environmental protection, while strengthening communication with medical professionals and consumers."