PharmaResearch (214450.KQ) extended double-digit earnings growth in the first quarter of this year, but analysts say momentum is slowing in its medical device business centered on Rejuran. Overseas market expansion and growth in the cosmetics segment are emerging as key variables going forward.
According to industry sources on Tuesday, PharmaResearch posted first-quarter revenue of 146.1 billion won, up 25.0% from a year earlier, while operating profit rose 28.1% to 57.3 billion won.
The cosmetics business drove the earnings growth. First-quarter cosmetics revenue jumped 51.0% year-on-year to 42.1 billion won, significantly beating market expectations. "Demand for premium dermocosmetics is expanding on the halo effect of the Rejuran brand," said Ha Tae-ki, an analyst at Sangsangin Securities. "Growth factors include rising demand from foreign tourists in the domestic market, along with expanding sales in Southeast Asia and entry into Sephora channels in China and the United States overseas."
In contrast, the medical device segment, which had been the company's core cash cow, is showing a clear slowdown in growth. First-quarter medical device revenue increased 14.6% to 79.5 billion won, but domestic medical device sales slipped slightly from the previous quarter to 58.4 billion won. While that figure rose 20.9% from a year earlier, the pace of growth has slowed compared with the past.
"PharmaResearch's top-line growth has been driven by domestic medical device sales centered on Rejuran, but starting in the second quarter of 2025, growth is on a slowing trajectory," Ha said. "This reflects the impact of intensifying competition among ECM-based product lines in the domestic skin booster market."
Indeed, Rejuran's domestic sales growth, which surged 93.3% year-on-year in the second quarter of 2025, gradually decelerated to 58.9% in the third quarter, 42.5% in the fourth quarter, and 20.9% in the first quarter of this year. The report attributed the slowdown to the growth of ECM skin booster products such as L&C Bio's "Rituo" and Hans Biomed's "Cellerdiem," as well as the increasing entry of new competitors.
Still, Ha said growth potential remains substantial in overseas markets. First-quarter medical device exports edged down 0.5% year-on-year to 21.1 billion won, weighed down by sluggishness in China and Japan. However, initial shipments to Europe were reflected in the figures, and a recovery centered on Europe, South America, the Middle East, and Southeast Asia is likely to emerge from the second quarter. "In the short term, expansion in the European and Southeast Asian markets is expected, and in the long term, growth could widen further through product approvals in Brazil and Japan, as well as U.S. FDA approval," Ha said.
On the share price, the report suggested the possibility of a gradual recovery. PharmaResearch's stock price recovered to the 560,000 won range in late January this year before falling to the 270,000 won range in early April, but has since rebounded to the 320,000 won range.
"First-quarter earnings met market expectations in terms of overall top-line growth," Ha said. "If a recovery in higher-margin medical device exports is confirmed from the second quarter, the stock price is highly likely to break out of its short-term low and shift into a recovery trend."
