Botulinum toxin makers Hugel, Medytox, Daewoong watch Middle East expansion plans as tensions raise logistics risks
Unease centered around the Iran war is keeping Korean drugmakers and health device companies on their toes amid growing concerns over supply chains and exports.
The Korea Pharmaceutical and Bio-Pharma Manufacturers Association has warned that product supply schedules could be disrupted if the conflict in the Middle East leads to reduced flights, altered flight routes or closed airways. Delayed payments could also pose risks for companies, the business lobby said.
“Disposable culture bags, filters and raw materials essential for biopharmaceutical production require a high degree of precision and are mainly transported via air logistics,” said Jung Yun-taek, president of the Pharmaceutical Strategy Institute.
“The closure of Middle Eastern routes could lead to a surge in airfares and delivery delays, dramatically increasing manufacturing costs.”
According to the Ministry of Food and Drug Safety, the self-sufficiency rate of Korean drugmakers stood at about 23 percent in 2023.
Jung added that if export routes to the Middle East — which has recently emerged as a key growth market for Korean companies — are blocked, the profitability of Korean firms could decline and their global presence could weaken.
Korean botulinum toxin producers Hugel, Medytox and Daewoong Pharmaceutical are particularly on edge as they have aggressively expanded their presence in the Middle East in recent years.
Hugel, which has entered Kuwait and the United Arab Emirates, held workshops in the two countries late last year to promote its products and strengthen brand recognition as it seeks to expand further in the region.
Medytox is pushing ahead with plans to build a botulinum toxin production plant in Dubai Science Park, aiming to become the first Korean company to establish an overseas halal-certified, non-animal liquid toxin production facility.
Daewoong Pharmaceutical signed export contracts with Iraq and Bahrain in October, securing a network of 10 Middle Eastern markets and underscoring the region’s importance as a key foothold in its global expansion strategy.
“The impact of the conflict may be limited in the short term, but if it persists for a prolonged period, companies may have to reconsider their Middle Eastern expansion plans,” an industry source said.
According to the Korea Health Industry Development Institute, Korea’s bio and health industry exported a record $1 billion to the Middle East last year, up 33.8 percent from 2024. Medical devices and pharmaceuticals accounted for $380 million and $170 million of the total exports, respectively.
Meanwhile, the Dubai branch of Korean dental implant company Osstem Implant switched to emergency operations last week, with employees working from home. The company said it has been closely monitoring emergency contacts and consulting with the Korean Embassy to respond to the rapidly evolving situation.
hwkan@heraldcorp.com
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