CITIC SEC: Two-wheel drive for medical beauty and cosmetics marketing investments, the PDRN industry chain is poised for growth.

CITIC SEC released a research report stating that ingredient innovation is an important driver for growth in the skincare and medical aesthetics sectors. Following hyaluronic acid and collagen, the industry urgently needs breakout ingredients to lead the way. The firm believes that PDRN has breakout potential: its efficacy principles are well substantiated, it has established a strong foundation of consumer recognition, and it has long-term verification and consumer acceptance in overseas medical aesthetics and skincare applications. The popularity of PDRN has been steadily rising in recent years, but the industry chain is "hot" without having "exploded"; although raw materials, brands, and medical aesthetics manufacturers are actively laying out their plans, the current marketing anchor points for ingredients are not yet distinct, and brand investments remain relatively cautious, resulting in a lack of significant growth in the end market. The firm believes that if PDRN products for medical aesthetic injections gain approval, if C-end marketing finds a more focused anchor point, and if the marketing efforts for medical aesthetics and cosmetics resonate together, the PDRN industry chain is expected to see significant growth. It is optimistic about companies that are leading the layout of PDRN medical aesthetic products, actively investing in PDRN ingredients in the cosmetics industry, and those with large-scale production capabilities in raw material manufacturing. CITIC SEC's main points are as follows: PDRN is "hot" but not yet "exploded," and requires a catalyst. PDRN's unique biological activity and increasing ingredient efficacy have contributed to its popularity; according to Ji Guo Data, by 2025, the volume of PDRN discussions on Douyin/Xiaohongshu/Weibo/Kuaishou is expected to grow by 2.4 to 33 times year-on-year, with over 9,000 new cosmetic registrations in 2025 (+20% year-on-year). Various cosmetic and medical device companies are positioning themselves: Lepu Medical Technology has submitted an application for approval, Lirai Technology/Lingmei Biotech and others are in clinical trials, and Yixin Holdings (PRP) is actively advancing the registration of the Class III medical device Lizhu Lan; however, due to regulatory approvals, there are currently no compliant product applications. In the cosmetic field, CHICMAX (02145), Proya (603605.SH), Yunnan Botanee Bio-Technology Group, and L'Oral, among others, have launched PDRN single products. Currently, South Korean companies APR and PRP dominate the global promotion of PDRN; according to DATAINTELO, the global market size for PDRN is projected to be approximately $1.8 billion by 2025, with the Asia-Pacific PDRN market, led by South Korea's medical aesthetics, accounting for about 41.2% of the global total, corresponding to about $740 million. According to Jiuxian Data, the market size for PDRN cosmetics in China is only about 400 million yuan, with the top brand's annual sales being less than 200 million yuan, indicating that the industry is still in its early stages and requires further catalysts. Strong academic consensus on PDRN, high consumer awareness, and long-term extensive application validation. PDRN has a long history of academic research, with multiple papers published in leading academic journals at JCR Q1 level, laying a foundation for downstream applications. Research on PDRN's active mechanism began in the 1990s, leading to numerous citations in subsequent literature; recent papers have made progress in material characterization, molecular mechanisms, and clinical efficacy. South Korean companies have driven the global increase in PDRN's popularity, with several European and American celebrities promoting the ingredient; the presence of counterfeit PDRN in the domestic market has laid the groundwork for consumer recognition, with C-end brand marketing on the rise. Mastelli began clinical research on PDRN in the 1980s-1990s and introduced the first PN medical aesthetic injectable PLINEST in 2005; thereafter, PRP launched the PDRN medical aesthetic injectable Rejuran in 2014; in the cosmetics field, research on nucleic acid ingredients can be traced back to the 1960s; PDRN has a long history of application in medical aesthetics and cosmetics, providing an academic foundation and establishing consumer awareness. Reviewing the global PDRN leaders, PRP vertically deepens its presence in drugs/cosmetics/devices, while APR focuses on expanding its reach in the mass cosmetics sector. 1) PRP: The PDRN industry chain is vertically integrated, establishing a physician mindset through ToB (business-to-business) efforts, while driving sales growth through ToC (business-to-consumer) initiatives. PRP (PharmaResearch) has established a complete supply chain for PDRN from raw materials to devices/cosmetics/drugs, backed by self-controlled fishing sources and proprietary raw material preparation processes. By 2025, it expects PDRN medical device revenue to reach 1.42 billion yuan and cosmetic revenue to reach 590 million yuan. Initially, the medical aesthetic business focused on professional endorsements from doctors; after five years of education on the B-end, it has begun to strengthen C-end marketing, leading to continuous high growth, with a CAGR of +56% from 2018 to 2025 in medical aesthetics revenue; cosmetics have benefited from external recognition of ingredients, and revenue growth has accelerated, with a CAGR of +56% for cosmetics revenue from 2018 to 2025, including +69% year-on-year in 2025. 2) APR: Features and cost-effectiveness of PDRN cosmetics stand out, with multi-channel expansion driving high growth. APR is positioning itself in both beauty devices and cosmetics, and from 2024 onwards, its Medicube brand aims to seize the PDRN opportunity for rapid growth, with a projected CAGR of +71% in company revenue from 2023 to 2025. On the product front, it has developed its own liposome encapsulation technology and innovative capsule + gel forms, and its price positioning targets the mass market; according to Amazon, the price of its serum is over 25% lower than that of competitors. Leveraging advantageous efficacy, novel experiences, and high cost-performance, multiple Medicube PDRN series products rank among the top sellers in their category on Amazon. Initially, it focused on building brand awareness through its self-operated online store, and from Q2 2024, it plans to extend to online third-party platforms like Amazon and intensify efforts in offline beauty stores and distribution channels after 2025 for accelerated growth. In China: the regulation of medical aesthetics is improving, and the first certifications are under review, while diverse players are entering the cosmetics market, with significant growth in cost-effective products. 1) Medical aesthetics: Regulation is improving, and there is potential for ingredient growth. In recent years, the definition of PDRN in drug-device combinations has been clarified, and expert consensus has been issued, paving the way for regulation; in January 2025, Lepu Medical Technology submitted the first PDRN medical injectable application, with Yixin Holdings (Lizhu Lan) advancing clinical research as well. Reviewing the iteration of ingredients in medical aesthetics, it is estimated that the proportion of regenerative materials in fillers increased from 6% in 2021 to over 45% in 2024, and the proportion of recombinant collagen in hydrating injections increased from 13% in 2022 to 28% in 2024, indicating promising prospects for PDRN in medical aesthetics. 2) Cosmetics: Diverse players are entering, with cost-effective products experiencing rapid growth, and Han Shu holding a leading share. According to Jiuxians data, by 2025, the sales of PDRN cosmetics priced under 100 yuan are expected to increase by 30 to 35 times year-on-year, with Han Shu achieving about 45% market share through its high cost-performance PDRN secondary products under 100 yuan. In July of this year, Han Shu's PDRN secondary products ranked second on Douyin's sales list with over 38 million GMV, second only to TILOVI, while on the Douyin brand list for PDRN in July, Harbin Fuerjia Technology, Aolun Nasu, and Yilian ranked fifth, seventh, and ninth respectively, showing the continued growth of domestic beauty brands. 3) Raw materials: Fish-derived extraction remains mainstream, while domestic manufacturers are making breakthroughs in plant extraction and recombinant synthesis through multiple approaches. Rui Jiming successfully developed recombinant PDRN by January 2025, which is now applied in Clinique's CX Skin Repair series. Additionally, according to Rui Jiming's environmental assessment report, its annual fish-derived production capacity is expanding to the 5-ton level; Bloomage Biotechnology Corporation Limited operates three pathways for Salmon extraction, microbial fermentation, and synthetic biology, and according to Huaxi's announcement, it expects its Weihai factory to start production in Q3 2026, with a total capacity of about 2 tons, and an expected revenue this year of tens of millions; cosmetic-grade PDRN has entered the supply chains of international leading cosmetic companies. Risk factors: Approval progress for new products falls short of expectations; new ingredient marketing effects are less than anticipated; decline in the popularity of new ingredients; safety risks; stricter-than-expected regulatory policies; competition among products exceeds expectations.