Daewoong, Unveils 'One Product, One Trillion Won Revenue' Vision

Daewoong Pharmaceutical has unveiled its next growth strategy, the 'One Product, one Trillion Won Plan.' The goal is to achieve sales of over 1 trillion won (approx. $770 million) for three flagship products—Nabota, Fexuclue, and Enblo—by 2030.

According to the investment industry, including Korea Investment & Securities and Daol Investment & Securities, Daewoong Pharmaceutical held an R&D seminar on the 23rd to share its strategies for expanding new drug sales and its research and development direction. The company plans to focus on expanding indications and increasing overseas market penetration based on preclinical and clinical results to boost sales of key products.

Daewoong Pharmaceutical aims to achieve 1 trillion won in sales for its self-developed botulinum toxin, Nabota, by 2028 by enhancing its overwhelming export performance. Nabota, the first Asian product to receive U.S. FDA approval in 2019, entered the local market through its U.S. partner, Evolus. As of last year, Nabota held a 12% market share in the U.S., showing rapid growth.

This growth trend is reflected in their performance. In the second quarter, Daewoong's toxin sales, including Nabota, amounted to approximately 46.5 billion won (approx. $35.7 million), with exports expected to exceed 40 billion won (approx. $30.7 million). Daewoong plans to strengthen Nabota's sales network, which has obtained product licenses in 67 countries worldwide through its partnership with Evolus.

The gastroesophageal reflux disease treatment 'Fexuclue,' set to enter the Chinese market next year, also aims to achieve 1 trillion won in sales by 2030. Launched in July 2022 as Korea's 34th new drug, Fexuclue has shown rapid growth, ranking second in market share for gastroesophageal reflux disease treatments last year. Starting this April, it has been co-sold with Chong Kun Dang, aiming to surpass 100 billion won (approx. $77 million) in annual sales, thanks to the strengthened sales line.

Leveraging the positive response in the domestic market, Fexuclue is expected to receive approval from China's National Medical Products Administration (NMPA) in the first quarter of 2025 and launch in the second half of the year. Given that China's anti-ulcer drug market is the largest globally, entering the Chinese market is seen as a way to secure stable sales growth.

Daewoong is also speeding up the expansion of Fexuclue's indications. Currently, Fexuclue is approved in Korea for treating erosive gastroesophageal reflux disease and acute and chronic gastritis mucosal lesions. By 2027, the company plans to secure additional indications for preventing ulcers caused by nonsteroidal anti-inflammatory drugs, combination therapy with antibiotics for Helicobacter pylori eradication, gastritis treatment, and reflux esophagitis.

The final product aiming for 1 trillion won in sales is the diabetes treatment 'Enblo,' also set to launch in China soon. Enblo has completed phase 3 clinical trials in China for combination therapy with the existing diabetes treatment 'Metformin.' Daewoong explained that the Chinese product license is expected next year, as results have shown improved glucose control when Enblo was switched to patients previously prescribed AstraZeneca's 'Forxiga.'

Notably, with AstraZeneca deciding to withdraw Forxiga from the domestic market due to price reduction issues, a market gap has emerged. Daewoong plans to expand Enblo's market share by continuously broadening its prescription target, including diabetic patients with accompanying kidney disease.

Wi Hwi-Joo a researcher at Korea Investment & Securities, stated, "Expectations for performance growth are rising as two new drugs are set to be released in China, and the 'best-in-class' strategy is proving successful. We maintain a target price of 190,000 won (approx. $146) with a buy recommendation."