Published date: December 16th, 2021
BioPlus is looking to leap forward through pioneering the Chinese market.
BioPlus is already showing smooth growth in medical device businesses such as hyaluronic acid (HA) fillers, and its earnings are expected to increase much more if performance is added to the market expansion.
▲ Jeong Hyun-kyu, CEO of BioPlus.
According to the pharmaceutical bio industry on the 16th, BioPlus is expected to be able to start its medical device business in China starting next year, including hyaluronic acid fillers and anti-adhesion drugs.
BioPlus previously established a local joint venture in Hainan to enter China. Hainan is an area where China is building a special medical tourism zone at the national level. It is highly likely that demand for medical devices will increase in the future due to various benefits and low regulatory thresholds for healthcare-related companies.
BioPlus is currently working with Chinese medical company Zimming Group in Hainan Medical Tourism Zone to promote a franchise business that provides beauty and plastic surgery to local customers. BioPlus is in charge of providing products such as fillers and dispatching domestic medical staff.
It is also discussing with Hainan health authorities the import permit procedure necessary to supply filler products produced in Korea for the franchise business to Hainan. Permission is likely to be granted early next year.
The business in Hainan is expected to add strength to BioPlus’ future expansion across China. BioPlus has decided to use the treatment data of medical devices to be used in Hainan starting next year to obtain product approval from China’s Central Government Food and Drug Administration (CFDA). In order to secure related data, it has formed partnerships with hospitals that have entered the Hainan Medical Tourism Special Zone.
BioPlus is also pushing for the establishment of a local factory to prepare for the expansion of its Chinese business. The factory site has already been secured. The specific establishment plan is expected to be finalized after the medical device approval process progresses to some extent.
For BioPlus, which accounts for more than 85% of the filler business, entering the Chinese filler market is important.
According to market research firm DRG Medtech, the filler market in the Asia-Pacific region is expected to grow from 2022 compared to the U.S. market, reaching $1.59 billion by 2025. Among them, the Chinese market is expected to account for $1.293 billion. In fact, China will stand tall as the largest filler market.
If BioPlus succeeds in entering China, it will wing its sales growth.
BioPlus is likely to collect 26.3 billion won in cumulative sales in the third quarter of this year, achieving 30 billion won in annual sales. Bioplus sales are growing rapidly from 17 billion won in 2019 to 24.4 billion won in 2020.
Profitability is also good. BioPlus recorded an operating profit ratio of 50.6% last year, but 51.7% until the third quarter of this year.
The securities industry believes that BioPlus has sufficient potential to achieve “four-digit sales” as CEO Jeong Hyun-kyu aims. When BioPlus was listed on the KOSDAQ in September, CEO Jeong suggested at a corporate briefing with the goal of achieving 300 billion won in sales by 2025.
Huh Hye-min, a researcher at Kiwoom Securities, said, “BioPlus is developing biological breasts and biological cartilage substitutes to diversify its portfolio, and it is also positive that filler and anti-adhesion permits will be visible in Hainan.” [Business post reporter Lim Hansol]