[Edaily Reporter Hong Ju-yeon ] DAEWOONGPHARMACEUTICAL(069620) Daewoong Pharmaceutical’s investment appeal appears to be broadening. With an “earnings surprise” anticipated for the second quarter due to sales growth of its botulinum toxin “Nabota,” securities firms have been issuing “Buy” recommendations one after another, identifying digital healthcare as the company’s next growth driver.

According to recent industry reports, securities firms including KB Securities, SamsungSecurities, and Korea Investment & Securities have unanimously issued “Buy” ratings on DAEWOONGPHARMACEUTICAL. This assessment is based on the expectation that, in the short term, accelerated shipments of Nabota ahead of the implementation of tariffs will boost earnings in the second and third quarters, while in the medium to long term, digital healthcare will become the next growth driver following botulinum toxin. With DAEWOONGPHARMACEUTICAL’s stock price standing at 127,600 won as of the 24th, KB Securities and SamsungSecurities set a target price of 210,000 won, while Korea Investment & Securities set a target price of 250,000 won.

Projected to Exceed Consensus in Q2… Q3 Also Looks Promising

Currently, Nabota is the product driving DAEWOONGPHARMACEUTICAL’s earnings. Nabota recorded annual sales of 228.9 billion won in 2025, accounting for 16.5% of total sales. In particular, the company continues to pursue export-led growth, with exports accounting for 84% of sales.

Securities firms expect DAEWOONGPHARMACEUTICAL’s second-quarter operating profit to exceed market expectations by more than 20%. KB Securities projected second-quarter standalone revenue of 395.8 billion won—an 8.8% increase year-over-year—and operating profit of 72.8 billion won, up 16.5%. Korea Investment & Securities projected standalone revenue of 407.1 billion won (up 12% year-over-year) and operating profit of 72.9 billion won (up 17%), expecting operating profit to exceed the consensus estimate by 26%. SamsungSecurities also estimated consolidated revenue of 440.5 billion won (up 8.6%) and operating profit of 66.1 billion won (up 14.3%), projecting that operating profit would exceed market expectations by 21.7%.

These forecasts are driven by increased exports of Nabota. The securities industry anticipates that early shipments—reflected in the earnings—are the result of U.S. partner Evolus proactively securing inventory in anticipation of a potential 15% U.S. tariff on pharmaceuticals, which could take effect in September. Evolus had previously announced plans to secure inventory in advance in response to the possibility of tariffs during its first-quarter earnings release this year. Daol Investment & Securities estimated that Evolus is securing inventory in advance—including volumes for next year—to address tariff uncertainty.

This trend is also evident in export indicators. In the second quarter, botulinum toxin exports from the Hwaseong region—where the Nabota production facility is located—increased by 56.8% year-over-year. Based on export data, toxin exports to the U.S. and Canada rose by 71% year-over-year and 128% quarter-over-quarter; analysis indicates that DAEWOONGPHARMACEUTICAL accounted for a significant portion of these shipments.

Estimates for Nabota’s second-quarter export revenue range from 92.5 billion to 94.0 billion won, depending on the securities firm. Jeong Dong-hee, an analyst at SamsungSecurities, stated, “Nabota sales are expected to increase significantly due to favorable exchange rates and advance purchases by partners ahead of the U.S. tariff taking effect,” adding, “The volume of early shipments is expected to expand further in the third quarter.” Shin Ji-hoon, an analyst at KB Securities, noted, “Thanks to the effect of early toxin shipments, third-quarter operating profit is projected to reach 103.3 billion won, with the operating profit margin expanding to 23.6 percent,” adding, “Since this involves bringing forward shipments to the U.S. ahead of the tariff taking effect, it is necessary to monitor the quarterly shipment trends going forward.”

However, regarding the analysis that early shipments contributed to the sales increase, a DAEWOONGPHARMACEUTICAL official explained, “Rather than viewing the early shipments as resulting from specific circumstances, the increase in shipments is due to the rapid growth of Nabota in the U.S., South American, and Middle Eastern markets.”

Key Focus for the Second Half: Moving Beyond ‘Toxins’ to ‘Digital Healthcare’

DAEWOONGPHARMACEUTICAL announced that cumulative sales of Nabota exceeded 1 trillion won as of June 30. This milestone was reached approximately 12 years after its domestic launch in 2014. In 2019, Nabota became the first Asian botulinum toxin to receive marketing approval from the U.S. Food and Drug Administration (FDA); it currently has partnerships in approximately 80 countries and has received marketing approval in 69 countries. DAEWOONGPHARMACEUTICAL is currently constructing a new plant dedicated to botulinum toxin, with the goal of beginning operations in 2027; upon completion, the facility will have a production capacity of 16 million vials.

In this regard, DAEWOONGPHARMACEUTICAL announced that it aims to grow Nabota into a global blockbuster brand with annual sales of 500 billion won by 2030 through the development of a next-generation aesthetic portfolio.

The securities industry is focusing on digital healthcare as the next growth engine to succeed botulinum toxin. DAEWOONGPHARMACEUTICAL is rapidly expanding its digital healthcare business, led by “Think,” an AI-based smart inpatient monitoring solution. The company is targeting cumulative orders for 50,000 hospital beds this year, and expects revenue growth to accelerate in earnest starting in 2027 as the number of installed beds increases and utilization rates recover.

KB Securities and Korea Investment & Securities have also identified the second half of the year as a key period to assess whether Think’s revenue will expand as its utilization rates rise at individual hospitals. While its contribution to profits is currently limited, analysts note that increased adoption within hospitals and a growing number of new clients could lead to improved revenue and profitability. DAEWOONGPHARMACEUTICAL’s digital healthcare revenue for the second quarter of this year is estimated at 16.3 billion won, a 31% increase year-over-year.

DAEWOONGPHARMACEUTICAL plans to actively target the digital healthcare market by leveraging its lineup—which covers the entire treatment cycle, including △Mobicare (outpatient), △Think (inpatient), and △RPM (post-discharge).