South Korean bio firms enjoying record-high sales last year may have benefitted from a demographic change of women outnumbering men, with their economic power stronger than before, according to industry observers quoting statistics.
Statistics Korea said in its September announcement that the number of women stood at 25,715,304 in June, 492 higher than the male population, marking the first time women have outnumbered men since the government began compiling data in 1960.
The gap between men’s and women’s life expectancies is widening. The preference for sons in Korean society is not as strong as it was before. By 2040, the gender ratio -- the number of men to 100 women -- is expected to fall to 97.8.
The recent demographic change appears to have bolstered the rapid growth of the nation’s cosmetic surgery market and its players that target mainly women.
According to industry sources, local bio firms including Meditox, Huons and Hugel hit new sales records last year.
Medytox, the largest manufacturer of liquid botulinum toxin, commonly known as botox and hyaluronic acid fillers, saw a 61 percent increase in its annual sales last year with an operating profit of 51.6 billion won ($42.7 million).
Annual sales by Huons, another bio venture producing lidocaine, filler and injection equipment, also surged 34.4 percent to 245 billion won, with operating profits of 51.3 billion won.
The growing popularity of its latest invention “Dermashine,” a prefilled injector, in China has further pushed the growth, the company said.
“With the size of the cosmetic surgery market growing, sales of related products have been surging steadily,” said a Huons official. “Exports to China have also increased in not only filler products, but also medical equipment that injects drugs into skin,” he added.
Hugel, a bio firm established by a plastic surgeon, saw a 61.3 percent increase in its sales to 65 billion won. Liquid botulinum toxin and hyaluronic acid fillers are Hugel’s main products.
Cosmetic surgery has become more popular than before, driven by 30-something women open to drug injections for beauty treatment. The demand for cosmetic surgery is likely to grow not only in Korea, but also in other emerging countries, along with the income growth of female workers there, another industry watcher said.
Korean bio firms appear to have greater potential in the future, but their value in the stock market may have been overrated, citing potential risks, an asset manager at Hong Kong told The Korea Herald. Medytox, for instance, hit a record in June last year with 629,500 won per share, from 15,900 won in Aug. 12, 2011. The stock was traded 483,100 won on Thursday close.
“Those bio stocks delivers high growth, yet the valuation is expensive,” he said. “The investors are willing to pay more for growth stock ... but higher volatility is expected for investing in those high growth, high valuation stocks.”
By Cho Chung-un (
christory@heraldcorp.com)