[THE INVESTOR] Medytox’s profits next year will be dented by personnel and R&D costs, said Mirae Asset Daewoo on Nov. 15, lowering the target price to 610,000 won (US$546.89) from 650,000 won.

Its third-quarter revenue rose 22.1 percent on-year to 40.3 billion won but operating profit fell 5 percent to 16.9 billion won as exports decreased while fixed costs and R&D costs increased, explained analyst Kim Tae-heui.

Revenue in the fourth quarter will be up 18.2 percent on-year to 47.3 billion won and operating profit by 7.1 percent to 23.6 billion won, as exports of botulinum toxin hikes 40 percent from a year ago while costs decline, forecast the analyst. 

Although Innotox’s phase 3 clinical trials in US have been postponed to next year, the fact that it is an advanced liquid formula and that Allergan has taken charge of marketing is attractive, noted Kim suggesting a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)