Pharmaceutical companies such as Dong-A Pharmaceutical, Dongkook Pharmaceutical, Dongwha Pharmaceutical, and Daewoong Pharmaceutical have seen a significant surge in the sales of skincare products developed using ingredients and technology from existing pharmaceuticals in the first quarter of this year. The increase is attributed to the substantial market response to “cosmeceuticals,” a blend of cosmetics and pharmaceuticals. Derma cosmetics, which combine dermatology and cosmetics, have gained notable traction, showcasing the effectiveness of skincare products that integrate pharmaceutical ingredients or technology.
According to each company on May 20, Dong-A Pharmaceutical’s derma cosmetic brand, Fation, recorded sales of 5.4 billion won in the first three months of this year, up 122.5% on-year. Launched in 2019, Fation utilizes the active ingredients found in Noscarna Gel, an acne scar treatment, offering a diverse range of products, including serums, creams, and mask packs.
Fation’s annual sales surged steeply from 2.4 billion won in 2021 to 6 billion won in 2022 and 13.2 billion won in 2023. Buoyed by the growth, the company has recently been engaging in aggressive marketing activities. In March, a Chinese influencer sold out 4,300 sets of the “Fation Noscarna Nine Trouble Serum S” in just one second during a live broadcast, generating 200 million won in sales.
“The distinct efficacy and effectiveness of our products, developed based on proprietary ingredients and technology, in improving skin troubles have quickly spread among consumers, rapidly raising brand awareness and increasing sales,” a company staffer said. According to Dong-A Pharmaceutical, the Heparin RX Complex, developed by combining its proprietary technology with the ingredients of Noscarna Gel, provides quick soothing effects on sensitive skin affected by skin troubles, sebum imbalance, and redness caused by external irritations.
Dongkook Pharmaceutical utilized its expertise from producing the wound treatment Madecassol, launched in the 1970s, to introduce the Centellian brand in 2015, entering the skincare market and achieving rapid growth. In the first quarter of this year, Dongkook’s healthcare division, which includes Medeca Derma Cosmetics and the home beauty device Madeca Prime, recorded sales of 67.3 billion won, an 8.9% on-year increase from 53.7 billion won.
Entering the saturated cosmetics market as a latecomer, Dongkook Pharmaceutical has succeeded in using Centella Asiatica extract, the active ingredient in Madecassol powder. This ingredient provides moisturizing, whitening, regeneration, and wrinkle improvement. Madeca Cream and Ampoule are key products in Dongkook Pharmaceutical’s derma cosmetics line.
Daewoong Pharmaceutical announced a 125% increase in first-quarter sales for its derma cosmetic brand Easydew compared to the same period last year. However, the company did not disclose detailed sales figures. Easydew features a blemish ampoule containing Daewoong Pharmaceutical’s patented ingredient “DW-EGF,” a highly active skin growth factor.
Dongwha Pharmaceutical revealed that its “Fucid Cream,” launched in 2021 utilizing the main ingredient Fuciderm of the existing wound ointment Fucidin, achieved cumulative sales of 250 billion won by March this year.
Pharmaceutical companies see cosmetics as a stable source of revenue due to lower failure rates and costs compared to new drug development. However, competition for survival is intensifying as more pharmaceutical and biotech companies enter the cosmetics market.
