SCHEDULE: Daewoong Boosts AEON Biopharma Stake to 49.99%

Daewoong Co., Ltd. and Daewoong Pharmaceutical Co., Ltd. have increased their beneficial ownership in AEON Biopharma, Inc. to 49.99% through an exchange of convertible notes for common stock, a new note, and warrants.

Summary

• Daewoong Co., Ltd. (DWC) and Daewoong Pharmaceutical Co., Ltd. (DWP) collectively reported beneficial ownership of 12,009,737 shares of AEON Biopharma, Inc. Common Stock.
• This represents 49.99% of AEON Biopharma's outstanding Common Stock, based on 24,024,282 shares outstanding as of January 21, 2026.
• The ownership increase resulted from an Exchange Agreement where DWP converted previously held senior secured convertible notes (totaling $15.0 million) into equity.
• On January 21, 2026, DWP received 11,918,380 shares of Common Stock, a new senior secured convertible note for $1,500,000, and warrants to purchase up to 8,000,000 shares at $1.09392 per share.
• The transaction strengthens the partnership between Daewoong and AEON Biopharma, focusing on the development and commercialization of ABP-450.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, reflecting a strengthened strategic partnership and a significant equity commitment from a key manufacturing and licensing partner, which de-risks the company's financial structure to some extent, despite the inherent single-product risk.

Positives

• Strengthened partnership between Daewoong and AEON Biopharma, crucial for the development of ABP-450.
• ABP-450 targets a significant and growing global therapeutic botulinum toxin market, projected to reach $4.4 billion by 2027.
• ABP-450 is manufactured by DWP in FDA, Health Canada, and EMA approved facilities, indicating high quality and regulatory compliance.
• The Reporting Persons currently have no intent to sell their Common Stock in the foreseeable future, indicating long-term commitment.

Negatives

• AEON Biopharma's future success currently depends entirely on the successful and timely regulatory approval and commercialization of its only product candidate, ABP-450, representing a high concentration of risk.

Risks

• AEON Biopharma's future success is entirely dependent on the successful and timely regulatory approval and commercialization of its sole product candidate, ABP-450.

Future Outlook

The Reporting Persons intend to review their investment in AEON Biopharma on an ongoing basis and currently have no intent to sell, transfer, or otherwise dispose of the Common Stock in the foreseeable future. They reserve the right to purchase additional shares or other securities of the Issuer from time to time, depending on their evaluation of the Issuer's business, prospects, financial condition, and market conditions. The New Convertible Note will automatically convert into shares or Pre-Funded Warrants upon a Qualified Financing of at least $30.0 million.

Management Comments

• AEON Biopharma's future success currently depends entirely on the successful and timely regulatory approval and commercialization of its only product candidate, ABP-450.

Industry Context

StockSavvy.ai notes that this increased stake by Daewoong, a major pharmaceutical manufacturer, underscores the strategic importance of the therapeutic botulinum toxin market. The market's projected growth from $3.0 billion to $4.4 billion by 2027 highlights a significant opportunity, and Daewoong's deep involvement with ABP-450, including its manufacturing in FDA-approved facilities, positions AEON Biopharma with a strong partner in a competitive landscape.

Comparison to Industry Standards

• The reliance on a single product candidate, ABP-450, for future success is a common characteristic of early-stage biopharma companies but represents a higher risk profile compared to diversified pharmaceutical giants like Pfizer or Johnson & Johnson.
• The partnership with Daewoong, a company with FDA, Health Canada, and EMA approved manufacturing facilities for ABP-450 (the same botulinum toxin complex as Evolus's Jeuveau), provides a significant advantage in terms of manufacturing quality and regulatory pathway compared to smaller biotechs that might outsource production to less established partners.
• The target market for therapeutic botulinum toxin, projected to grow to $4.4 billion by 2027, indicates a robust and expanding sector, comparable to other high-growth specialty pharmaceutical markets.

Related Party Transactions

• DWP is the counterparty to AEON Biopharma's License & Supply Agreement, effective December 20, 2019, for exclusive rights to commercialize and distribute ABP-450 in certain territories.
• DWP manufactures ABP-450.
• The exchange of convertible notes for equity, a new note, and warrants constitutes a significant transaction between related parties (DWP and AEON Biopharma).

Stakeholder Impact

• Shareholders: Increased confidence due to a strengthened partnership with a major pharmaceutical company and conversion of debt to equity, potentially reducing immediate debt burden. However, significant dilution occurred with the issuance of 11,918,380 shares.
• Employees: Continued stability and focus on the development of ABP-450, potentially securing future employment related to the product's success.
• Customers/Patients: Potential for accelerated development and commercialization of ABP-450, offering a new therapeutic option in the botulinum toxin market.
• Creditors: The conversion of $15.0 million in convertible notes to equity reduces the company's debt obligations, while a new $1.5 million note and warrants are issued.

Next Steps

• Ongoing review of investment in AEON Biopharma by Reporting Persons.
• Potential future purchases of additional shares or securities by Reporting Persons.
• Conversion of the New Convertible Note upon a Qualified Financing of at least $30.0 million.
• Continued efforts towards successful and timely regulatory approval and commercialization of ABP-450.

Key Dates

Recommendation

The filing indicates a significant strengthening of the strategic partnership between AEON Biopharma and Daewoong, with Daewoong converting substantial debt into equity and expressing long-term commitment. This provides a degree of stability and validation for AEON's sole product candidate, ABP-450. However, the company's entire future success hinges on this single product, which introduces considerable risk. While the increased stake and continued support are positive, the inherent risk of a single-product biotech, coupled with the dilution from the share issuance, suggests a "hold" recommendation until further clarity on ABP-450's regulatory and commercial progress emerges.

Keywords

AEON Biopharma, Daewoong, Schedule 13D, Beneficial Ownership, ABP-450, Botulinum Toxin, Pharmaceuticals, Convertible Note, Warrants, Biopharma Investment, SEC Filing