[Edaily Reporter Kim Seung-kwon ] PharmaResearch(214450)is staking its future on expanding into North America—the world’s largest beauty market—despite concerns over stagnant growth in its domestic market. At the same time, attention is focused on the company’s strategy to achieve annual sales of 1 trillion won.

Over the past year, the company’s stock price has been on a rollercoaster ride, plummeting more than 40% from a 52-week high of 713,000 won to a low of 255,000 won, driven by fears of a “peak-out” amid competition from latecomers, despite strong Rejuran performance. Recently, buoyed by news of the acquisition of U.S. cosmetics manufacturer “CG USA,” the stock appears to be finding a bottom, recovering to the 330,000 won range. Against this backdrop, Pharm Daily has conducted a detailed analysis of PharmaResearch’s current status and outlook in the U.S.

When will CG USA begin operations? Company officials say, “We can implement the filling process ahead of schedule.”

According to industry sources on the 13th, PharmaResearch recently finalized its acquisition of the U.S. cosmetics manufacturer “CG USA.” CG USA, established in 1986, is a U.S. cosmetics manufacturer with a production base in Los Angeles. It is an OEM/ODM company that has been responsible for the planning, formulation development, production, filling, packaging, and quality control of cosmetics and personal care products. PharmaResearch explained that it decided to proceed with this acquisition to stably meet the growing demand for Rejuran Cosmetics, which is expanding primarily through Sephora and Amazon channels.

The key issues are the first products to be manufactured and the production volume. Specifically, industry sources note that it is crucial to determine which products—ampoules or creams—will be shipped to the U.S. first and which channel will receive the initial shipment. There is also speculation that the order cycles of Sephora, Amazon, and Canadian channels must align with the U.S. factory’s production schedule, and that the volume of U.S. production will to some extent reflect U.S. sales volume.

When asked when local production would actually begin, a PharmaResearch official stated, “We anticipate that some fill-finish processes can be localized relatively quickly after the acquisition process is completed,” adding, “The specific schedule will be determined in stages, taking into account the status of production preparations.” The company plans to respond swiftly to market demands by first localizing the fill-finish process rather than establishing a complete in-house production line.

The company also provided specific details regarding the expected benefits following the plant’s launch. A company official explained, “Once the U.S. plant begins operations, we expect to shorten lead times compared to our existing production and export operations in Korea, while improving logistics and inventory management efficiency and enhancing cost competitiveness.”

In particular, the official emphasized, “This will enable us to respond more stably to the growing demand for Rejuran Cosmetics in North America, centered on Sephora and Amazon, and in the mid- to long-term, it will serve as the foundation for our North American localization strategy—using the U.S. as a base to expand not only into the North American market, including Canada, but also into the South American market.” In fact, Rejuran Cosmetics expanded its North American distribution network last March by officially launching on Sephora’s online and offline channels in the U.S.

Another variable in PharmaResearch’s entry into the U.S. market is the FDA’s classification determination for Rejuran injections. Son Ji-hoon, CEO of PharmaResearch, stated at an official event, “The U.S. market is a must-enter market, but we must obtain FDA approval to sell medical devices, and going through the process will take at least five years.” This scenario is based on the assumption that Rejuran will be classified as a “physical filler-type medical device,” similar to dermal fillers. Industry insiders explain that if it is classified as a “drug or combination product,” the process would be elevated to the level of a new biopharmaceutical drug, requiring the company to restart U.S. Phase 1, 2, and 3 clinical trials from the beginning—a process that could take more than 10 years.

The company maintained a cautious stance on this matter. A PharmaResearch official explained, “While we are currently pursuing approval through active communication with the FDA, specific approval strategies and timelines are directly linked to our business strategy and therefore cannot be disclosed,” adding, “As PN (polynucleotide)-based products represent a new category in the U.S. market where there are not yet sufficient precedents for approval, we understand that the FDA is reviewing them carefully.”

A securities industry analyst, who requested anonymity, predicted, “Keeping the specific FDA approval track confidential is a decision aimed at preventing the market shock that would result from public discussion of the ‘drug classification.’” The analyst added, “The company will treat the approval of the injectable drug as a long-term effort, while in the short term, it will stabilize its U.S. subsidiary through sales of CG USA-based cosmetics and OTC products, and then explore major distribution deals.”

Decline in Operating Profit Margin Following Acquisition of U.S. Manufacturer?...We Heard the Company’s Explanation

Another key concern for the market is whether the company can maintain its profitable track record without compromising its operating profit margins—which have been in the 30–40% range—during its expansion into Western markets. This is because, with latecomers like L&C BIO’s “Rituo” engaging in price competition with similar products, it has become difficult to maintain the same monopolistic position as in the past by relying solely on the domestic market.

A closer look at the company’s performance suggests that a breakthrough may lie in inbound tourism from foreign visitors to Korea and the diversification of overseas exports. In the first quarter of this year, PharmaResearch achieved its best-ever quarterly results on a consolidated basis, with revenue of 146.1 billion won and operating profit of 57.3 billion won. Of this, export revenue reached 58.8 billion won—a 30% increase year-over-year—expanding its share of total revenue to 40%. Exports of medical devices to Europe alone reached 21.1 billion won, leading to assessments that the partnership with France’s VIVACY is beginning to yield tangible results. Additionally, it is worth noting that Rejuran Cosmetics officially launched on Sephora’s online and offline channels in the U.S. last March, further expanding its North American distribution network.

Based on these trends, the securities industry forecasts revenue of 650 billion won and operating profit of 260 billion won (operating profit margin of 40%) for 2026, and revenue of 780 billion won and operating profit of 319 billion won (operating profit margin of 41%) for 2027. The outlook suggests that the operating profit margin could rise again from the 30% range to 40%. The company also believes it is possible to surpass 1 trillion won in revenue by 2028. PharmaResearch has set targets of 1 trillion won in revenue by 2028 and 2 trillion won by 2030.

Industry insiders agree that for the company to reach 1 trillion won in revenue, Rejuran Cosmetics must be fully transitioned into a locally operated brand in North America. PharmaResearch has announced that it will gradually shift local production to Rejuran Cosmetics’ key products—such as ampoules and creams—which are in high demand in the North American market; however, for this to be successful, local sales must be robust.

The company is preparing to expand into Canada in the second half of this year, in addition to the U.S. The local OTC production infrastructure is expected to be utilized first for the production of sunscreen products in the U.S.

PharmaResearch official stated, “Rejuran Cosmetics’ U.S. business has shown a positive growth trend since entering Sephora and Amazon’s online and offline channels,” adding, “Amazon sales in 2025 increased by more than 700% year-over-year, and the share of U.S. exports in the cosmetics business rose from 33% in the fourth quarter of last year to 48% in the first quarter of this year.” The representative added, “Going forward, we will not only expand sales through existing channels but also enhance our product portfolio to meet U.S. consumer demand, improve marketing efficiency, and secure a local production base to ensure stable supply.”