However, the two companies are not directly developing the novel hair-loss therapies currently attracting attention in the U.S., leading market observers to caution that the recent gains appear to be driven more by thematic trading than by tangible business developments.
According to KG Zeroin’s MP Doctor platform, Hyundai Pharmaceutical closed at 10,440 won on the KOSPI, up 23.99%, or 2,020 won, from the previous session. The stock climbed as high as 10,940 won intraday, hitting the daily upper limit.
JW Shinyak closed at 3,890 won on the KOSDAQ, up 8.66%, or 310 won. It surged as much as 21.09% intraday to 4,335 won.
The immediate catalyst was growing investor interest in next-generation hair-loss drugs in the U.S.
Bloomberg reported on Aug. 29 that hair-loss treatments were emerging as Wall Street’s potential “next gold mine” following blockbuster obesity drugs such as Wegovy and Mounjaro.
The report highlighted the size of the potential market, noting that hereditary hair loss affects roughly 50 million men and 30 million women in the U.S., while no fundamentally new treatment has been approved since the late 1990s.
Shares of Veradermics, which is developing an oral minoxidil treatment, have risen about 500% since its February listing, while Absci, which is developing an injectable candidate designed using artificial intelligence, has more than doubled this year, according to the report.
The excitement in the U.S., however, is centered not on established hair-loss treatments but on developers pursuing new mechanisms and formulations.
Cosmo Pharmaceuticals, for example, plans to seek U.S. Food and Drug Administration approval in the first quarter of next year for clascoterone 5%, a topical treatment for male pattern hair loss designed to block androgen activity in hair follicles. Veradermics and Absci are separately developing oral and injectable candidates.
The investment thesis centers on companies seeking to address unmet needs in efficacy, safety, and convenience that existing hair-loss treatments have yet to fully resolve.
In contrast, Hyundai Pharmaceutical and JW Shinyak primarily sell products based on established ingredients such as minoxidil, finasteride, and dutasteride.
Hyundai Pharmaceutical markets Minoxyl, a topical minoxidil brand available in liquid, gel, and combination formulations. Last year, it also launched Minoxyl Foam 5% Aerosol, designed to improve ease of use. Its oral hair-loss portfolio includes the finasteride-based Minopecia and the dutasteride-based Damodart.
JW Shinyak sells the finasteride products Monad and Monasta, as well as the dutasteride products Neodart and Dutamoa. Last year, it launched Mydil 5% Foam Aerosol, a topical minoxidil product.
Pharm Edaily found no immediate evidence of direct agreements linking either company to the U.S. developers behind the next-generation therapies currently attracting investor attention.
Hyundai Pharmaceutical does have a partnership with Cosmo Pharmaceuticals, but it is limited to South Korean rights for Winlevi, a clascoterone-based acne treatment. No additional collaboration involving clascoterone for hair loss is currently under discussion, according to people familiar with the matter.
“Hyundai Pharmaceutical does sell minoxidil-based hair-loss treatments, but they are over-the-counter products and do not account for a significant portion of the company’s revenue,” said one pharmaceutical industry official. “The company is developing new diabetes drugs, but as far as I know, it is not separately developing or planning a new hair-loss treatment.”
Sales of JW Shinyak’s flagship hair-loss drug, Monad, have actually declined in recent years, falling 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. First-half sales this year stood at 1.57 billion won, indicating little change from the previous year.
Sales figures for Hyundai Pharmaceutical’s hair loss portfolio are not disclosed separately, but prescription drugs are understood to be the primary driver of its earnings.
The company’s first-half revenue rose 11.5% year over year to 102 billion won, while operating profit jumped 427.5% to 3.5 billion won. The improvement, however, was largely attributed to increased sales of prescription medicines, including its dementia combination drug DMDuo.
Expectations surrounding Mifegymiso, an oral abortion drug for which Hyundai Pharmaceutical holds exclusive rights in South Korea, may also have contributed to the stock’s rally.
Still, market participants largely viewed Monday’s sharp move as part of a broader thematic rally fueled by U.S. enthusiasm for next-generation hair-loss drugs, rather than a reflection of immediate earnings upside for the Korean companies.
“The U.S. investment case for hair-loss treatments isn’t about existing drugs suddenly selling much more,” said one securities industry official. “Investors are focused on the fact that genuinely new therapies have been absent for a long time. Companies that merely sell existing hair-loss treatments should not be valued as if they have the same drug-development upside or earnings potential as developers of next-generation therapies.”
