Huadong Medicine has made another move in the field of medical beauty.

On the first trading day after the holiday, Huadong Medicine disclosed that Sinclair Pharma Limited (hereinafter referred to as Sinclair), a wholly-owned subsidiary of the UK, acquired 100% of the equity of Viora, an energy-based medical and aesthetic equipment company.

What kind of return has Huadong Medicine, which frequently deploys in the field of medical beauty, got?

Aiming at medical beauty

　　On February 7, the first trading day after the new year, Huadong Medicine disclosed that Sinclair, a wholly-owned subsidiary of the United Kingdom, acquired 100% of the equity of Viora, an energy-based medical and aesthetic equipment company.

　　Founded in 2005, Viora focuses on non-invasive and minimally invasive energy source equipment for medical beauty. It has a product portfolio using technologies such as laser, intense pulsed light and radio frequency. Its product applications cover the fields of anti-aging, body and face shaping, etc.

Viora has sales operations in more than 60 countries and regions around the world, with more than 10,000 institutional users worldwide.

At the product level, Viora has 5 products on the market. Its core product, Reaction, can be used for body and face shaping and skin tightening. It has been approved by the US FDA and obtained the third-class medical device registration certificate from the State Food and Drug Administration in 2015.

After the completion of the Viora equity transfer, Huadong Medicine plans to integrate Reaction into the domestic self-operated sales team.

　　In the two trading days after the holiday, the share price of Huadong Medicine continued to rise, closing at 38 yuan per share on February 8, up 2.56%.

　　This is not the first time Huadong Medicine has deployed in the field of medical beauty.

On February 18, 2021, which is also the first trading day after the Spring Festival, Huadong Medicine announced to the public that, through its wholly-owned subsidiary Sinclair in the United Kingdom, with a consideration of 65 million euros in equity and a sales milestone payment of up to 20 million euros, it acquired Cocoon's holdings. Some companies have 100% equity in High Tech, a Spanish energy source medical beauty equipment company, which is an international technology company focusing on non-invasive EBD (energy source) medical beauty equipment integrating R&D, production and sales. Its business Covering the two major medical and aesthetic fields of body shaping and skin repair, the main products include a series of products such as cryo-lipolysis and laser hair removal.

　　Since the acquisition of Sinclair in the United Kingdom in 2018, Huadong Medicine has been fully deploying the medical beauty industry, and has regarded non-surgical medical beauty products as the core area of ​​key development.

Bringing more than 500 million revenue

　　In the two recent acquisitions, Huadong Medicine has set its sights on the market segment of medical beauty energy source equipment.

　　Medical beauty equipment is in the upstream of the industry, with high technical barriers. In the global medical beauty equipment market, the energy source medical beauty system has the highest proportion of sales.

At the market level, according to the Medical Insight report, it is expected that the global energy source medical and aesthetic equipment market sales will reach US$4.455 billion in 2021, and will reach US$5.363 billion in 2023, with a compound growth rate of 9.78% from 2021 to 2023; Beauty device sales increased from $93 million in 2014 to $159 million in 2016, and are expected to reach $327 million in 2021, with a compound annual growth rate of about 15.5% from 2016 to 2021.

　　The non-surgical projects that Huadong Medicine takes as the key development direction also have imaginative growth space.

According to Frost & Sullivan statistics, the scale of China's medical aesthetics market in 2019 was 176.9 billion yuan, and the compound growth rate from 2014 to 2019 was 22.5%, which is one of the fastest growing countries in the world. In 2023, the scale of China's medical aesthetics market will reach 3601.3 billion.

In addition, the compound growth rate of China's non-surgical medical beauty project market from 2019 to 2024 is 19.2%, and the proportion will increase to 45.3% in 2024. Non-surgical projects are expected to become the main growth driver of China's medical beauty market in the future.

　　Some research reports pointed out that due to the characteristics of large R&D investment, long cycle and high risk, the net profit margin and return on equity (ROE) of products in the medical beauty market are also higher than those of medical services and beauty seekers.

　　Huadong Medicine, established in 1993, has taken the medical beauty industry as one of the key expansion directions in recent years.

After frequent shots, in the first half of 2021, the overall revenue of Huadong Medicine's medical beauty business was 565 million yuan, a year-on-year increase of 46.25%.

(Reporter Zhang Xiulan)