[SINGAPORE] Catalist-listed Hyphens Pharma wants to ride on the growing medical aesthetics market across South-east Asia, with the aim of becoming the region’s leading consumer healthcare group.
The pharmaceutical company is seeing a growing interest in this segment, as regional economic growth drives evolving consumer behaviours. A rising middle class has emerged – demonstrating greater willingness to invest in premium aesthetic procedures and dermatological products.
“Dermatology may be an underdeveloped category,” chief executive officer Lim See Wah told The Business Times in an interview. “Historically, it is always the acute diseases, the life-threatening diseases that took precedence. But with economic growth, ‘looking good, feeling good’ has become important.”
Interest in medical aesthetics is expanding in the region, with specialised clinics opening throughout Asean, noted Lim.
Dermatologists increasingly view aesthetic treatments as a natural extension of their medical dermatology practice, with many establishing dedicated aesthetic services alongside their usual offerings. “There is a reason why we think it is an interesting area where there’s still tremendous opportunities for us to participate,” said Lim.
Strategic pivot
To reflect its strategic pivot, Hyphens has renamed its “speciality pharma principal” segment to “pharmaceuticals and medical aesthetics”, signalling dermatology and aesthetic treatments as core growth pillars.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The company is leveraging both its existing drug portfolio and strategic acquisitions to capture market opportunities.
In November 2023, Hyphens acquired the remaining 58 per cent stake in Malaysia-based Ardence Pharma, under a step-wise agreement set to complete by FY2027.
Lim said that the move was strategically significant, citing Ardence’s rapid expansion across Singapore and Malaysia, through its product Plinest. The product also has established distribution partnerships in the Philippines, Indonesia and Thailand, and is securing product registrations in Vietnam.
Analysts viewed the deal favourably, given Ardence’s superior 29.4 per cent net profit margin to Hyphen’s 7 per cent in FY2022.
Aside from Plinest, the Ardence acquisition provides access to a diversified medical aesthetics portfolio, with new launches implemented across Singapore and Malaysia, explained Lim.
Hyphens is simultaneously developing proprietary products in the dermatology space.
In July, it launched Winlevi, a first-in-class topical acne treatment in Singapore and Malaysia, with Asean-wide registration underway. The product will be launched in the Philippines, Vietnam, Thailand and Indonesia progressively.
Lim noted that innovative products such as Winlevi generate significant market interest, and can attract potential partners with cutting-edge assets seeking regional market access.
Growth market
Despite its dermatology focus, Hyphens maintains its broader pharmaceutical identity.
Its pipeline includes Metoject, an auto-injector for methotrexate administration, with exclusive rights for Singapore, Malaysia, Vietnam and the Philippines. While applicable for psoriasis treatment, its primary use targets rheumatoid arthritis.
Regional expansion continues, to add to the group’s five current markets, with Cambodia and Thailand operations planned. The company has established legal entities in Cambodia, and a pharmacist is assisting with product registration there, said Lim.
He believes Asean remains ripe for growth, even amid United States tariff disruptions affecting global markets. “People… acknowledge that Asean remains a growth market… against the turbulent external market environment,” he added.
Regional healthcare infrastructure development provides opportunities. While Singapore’s private hospital sector has stagnated since Farrer Park Hospital opened more than a decade ago, Malaysia and Vietnam are experiencing a growth in private hospital services.
Vietnam, in particular, is shifting from overcrowded public hospitals towards a diverse ecosystem with private hospitals and modern polyclinics.
Pharmacy sector consolidation provides additional opportunities, Lim pointed out. Vietnam’s pharmacy chains expanded from 50 outlets a decade ago to 1,800 currently, creating enhanced channels for portfolio brands such as Ceradan.
Financial pressures
While the company is not directly exposed to tariffs, currency volatility has had an impact on performance. First-half 2025 net profit fell 68.9 per cent to S$1.7 million, from S$5.4 million previously, while revenue dropped 10.1 per cent to S$89.5 million.
The pharmaceuticals and medical aesthetics segment declined due to internal restructuring and reduced Vietnam sales. However, proprietary brands grew, driven by reclassified products and higher demand for Ceradan and Ocean Health.
In its bourse filing, the company flagged that gross margins suffered from currency mismatches, with foreign currency procurement against local currency revenues.
Still, Lim remains optimistic, noting healthcare’s defensive characteristics during economic downturns. Hyphens also targets the broad middle market segment rather than premium or budget extremes, positioning for resilience ahead.
