According to KG Zeroin MP Doctor (formerly Marketpoint), Hyundai pharm closed at 10,440 won on the Korea Stock Exchange (KOSPI) today, up 23.99% (2,020 won) from the previous trading day. During the session, the stock rose as high as 10,940 won, hitting the daily price limit.
On the same day, JW SHINYAK CORPORATION closed at 3,890 won on the KOSDAQ market, up 8.66% (310 won). During the session, the stock soared as high as 4,335 won, a 21.09% increase.
The direct catalyst driving up the stock prices of both companies is the investment frenzy surrounding new hair loss treatments that has taken hold in the U.S. On the 29th of last month (local time), Bloomberg reported that hair loss treatments are emerging as Wall Street’s “next gold mine,” following obesity treatments such as Wegovy and Mounjaro.
In particular, the fact that while the U.S. population suffering from hereditary hair loss totals approximately 50 million Namsung and 30 million women, no new treatments have been approved since the late 1990s was highlighted as a key growth opportunity. Although hair loss is not a life-threatening condition, the fact that it represents a consumer market where patients are highly willing to pay out-of-pocket for treatment was also cited as a factor attracting investor interest.
Currently, the hair loss treatment market consists primarily of oral medications—such as finasteride and dutasteride—that inhibit the action of male hormones, and topical minoxidil, which promotes hair growth by improving blood flow to the scalp. Although these treatments have been in use for a long time and have a proven track record of efficacy and safety, limitations have been pointed out, including concerns about side effects in some patients, restrictions on use by women, and the inconvenience of having to take or apply them daily. The fact that hair loss may resume if treatment is discontinued has also fueled demand for new treatments.
The stock prices of overseas developers targeting this unmet need have surged first. According to Bloomberg, the stock price of Veradermics, which is developing an oral minoxidil formulation, has risen by approximately 500% since its initial public offering (IPO) in February of this year, and Appside, which is developing “ABS-201”—an injectable candidate designed using artificial intelligence (AI)—has also more than doubled in value since the start of the year.
In other words, Bloomberg’s focus was not on the existing hair loss drug market. Instead, it highlighted the potential of companies developing new mechanisms of action and formulations that address the limitations of existing treatments. In fact, Cosmopharmaceuticals plans to submit an application to the U.S. Food and Drug Administration (FDA) in the first quarter of next year for “Classcoterone 5%,” a topical treatment for male pattern baldness that blocks the action of androgens in hair follicles. Veradermics and Appcy are also developing candidate compounds in oral and injectable forms, respectively. This indicates that attention is shifting toward companies targeting unmet needs in terms of therapeutic efficacy, safety, and convenience of use that existing hair loss treatments have failed to address.
In contrast, the hair loss businesses of Hyundai pharm and JW SHINYAK CORPORATION are centered on products in the minoxidil, finasteride, and dutasteride families that are already on the market. Hyundai pharm owns the “Minoxil” brand of topical minoxidil products. Following the launch of liquid, gel, and combination formulations, the company released “Minoxil Foam 5% Aerosol” last year to enhance user convenience. It also offers oral products such as “Minopecia” (containing finasteride) and “Damodat” (containing dutasteride).
JW SHINYAK CORPORATION sells “Monad Tablets” and “Monasta Tablets,” which contain finasteride, as well as “Neodat” and “Dutamoa,” which contain dutasteride. Last year, the company launched “Mydil 5% Foam Aerosol,” a 5% minoxidil topical solution.
According to this publication’s findings, there are currently no confirmed direct agreements with U.S. drug developers. While Hyundai pharm is collaborating with Cosmo Pharmaceuticals on certain projects, this is limited to the domestic distribution rights for “Winlevi,” an acne treatment containing clascoterone; reportedly, no immediate additional collaboration regarding hair loss medications has been discussed.
A pharmaceutical industry official stated, “While Hyundai pharm has a hair loss medication containing minoxidil, it is an over-the-counter (OTC) drug rather than a prescription drug, and it does not account for a significant portion of the company’s revenue.” The official added, “Although the company is currently developing new drugs for diabetes, to my knowledge, it has no separate preparations or plans for a new hair loss drug.”
Sales of JW SHINYAK CORPORATION’s flagship product, Monad, are actually on a downward trend. Monad’s sales have declined from 7.6 billion won in 2021 to 6.4 billion won in 2022, 5.1 billion won in 2023, 4.7 billion won in 2024, and 2.8 billion won last year. Sales for the first half of this year are also likely to remain at a level similar to last year’s, at 1.57 billion won.
Although sales figures for Hyundai pharm’s hair loss product line have not been separately disclosed, its financial performance is reportedly heavily influenced by prescription drugs. In fact, total revenue for the first half of this year rose 11.5% year-over-year to 102 billion won, while operating profit surged 427.5% to 3.5 billion won. While an improvement in performance has been confirmed, the expansion of sales for prescription drugs—including the dementia combination drug “DM Duo”—is cited as the primary driver.
Of course, it appears that expectations for the approval of “Mifegymiso,” an oral abortion drug for which Hyundai pharm holds exclusive domestic distribution rights, have also been partially reflected in the stock price. However, the prevailing view in the market was that today’s stock price movement was largely driven by a broader thematic rally fueled by investment enthusiasm surrounding new hair loss drugs in the U.S., and that investors should exercise caution.
A securities industry official pointed out, “The fact that hair loss treatments are being discussed as the next investment opportunity in the U.S. reflects attention on the lack of new treatments over a long period rather than an expectation that existing products will sell more,” adding, “We should not evaluate expectations for new drug development and actual earnings contributions equally based solely on sales of existing hair loss medications.”
