Medytox, Prospect of operating loss in 4Q(Korea Investment & Securities)

[Infostock Daily= Reporter An Hoe Hyun] Korea Investment & Securities analyzed on Medytox on the 21st that a massive operating loss will be inevitable in the fourth quarter of last year, and in particular, it is also feared to lose its brand image due to the decision to cancel the permission of the Ministry of Food and Drug Safety. In response, the investment opinion remained 'Neutral', and the target stock price was not presented separately.

Medytox's fourth-quarter sales fell 52% year-on-year to 28 billion won, far below the market forecast of 33.4 billion won. Currently, major product groups such as Meditoxin, Coretox and Innotox are all on the verge of canceling their product licenses.

"Although sales have not yet been completely banned due to the appeal against the Ministry of Food and Drug Safety's decision to cancel the license, the company is expected to lose its market share in the domestic market due to the loss of its brand image," the company explained.

"The sales damage will be inevitable because it will adversely affect not only sales of fillers that are mainly sold with toxin in Korea but also exports," the company analyzed, adding, "Due to the drop in sales, the operating loss, which was 11.4 billion won in the third quarter, will expand to 13.7 billion won in the fourth quarter."

"While it is unclear whether major product lines will resume sales, the operating deficit due to the impact on sales will continue this year," the company explained, adding, "In order for the stock price to make a meaningful rebound, it will have to be accompanied by strong expectations for future performance turnarounds as the uncertainty of the sales ban is resolved or the launch of new products becomes visible."

Reporter An Hoe Hyun ahh@infostock.co.kr