1 trillion KRW club, including Samsung Biologics and Hanmi, achieved their highest first-half sales ever
Last year, several members of the 1 trillion KRW club, including Samsung Biologics and Hanmi Pharmaceutical, achieved their highest first-half sales ever. However, Green Cross faced losses due to factors such as increased R&D expenses.
Despite the COVID-19 pandemic, there is a clear growth trend in specialized pharmaceuticals. Certain pharmaceutical companies have shown improved performance, yet some still experience deficits due to increased investments in research and development (R&D).
Despite the escalation of the COVID-19 endemic during the first half of this year, most pharmaceutical companies witnessed significant improvements in their financial performance. However, some pharmaceutical companies, including Green Cross, reportedly incurred losses due to the aftermath of factors such as R&D investments.
During the first half of this year, Samsung Biologics reported sales of KRW 1.5871 trillion, a 36% increase compared to the same period last year. This performance suggests that the company is on track to achieve another record-breaking year with sales expected to surpass KRW 3 trillion, following a similar trend from the previous year.
The operating profit also saw a 29% increase compared to the previous year, reaching KRW 445.2 billion, attributed to increased large-scale contract orders and enhanced production efficiency. Celltrion recorded sales revenue of KRW 1.1215 trillion on a consolidated basis for the first half of the year.
The first-half sales for Celltrion Healthcare, which is undergoing a merger, amounted to KRW 1.294 trillion, while Celltrion Pharmaceutical achieved sales of KRW 200.2 billion during the same period. However, Celltrion's first-half operating profit of KRW 365.4 billion and net income of KRW 318.0 billion decreased by about 10% compared to the same period last year.
Yuhan Corporation announced that its sales for the first half of this year reached KRW 913.53 billion, marking a 5.5% increase compared to the same period last year. This growth is mainly attributed to specialized pharmaceuticals (ETC) such as Leclaza, leading to robust performance. If this upward trend continues in the second half, the company is expected to reach the 2 trillion KRW club this year. The operating profit surged by 177.2% compared to the same period last year, amounting to KRW 43.865 billion. However, due to decreased licensing revenue and performance declines in certain business units such as leasing, the net income experienced a significant drop of -51.3%, amounting to KRW 52.531 billion.
ChongKunDang, a pharmaceutical company, has reported an increase in sales, operating profit, and net income. In the first half of 2023, its sales reached KRW 751.975 billion, a 7.0% increase compared to the same period last year. The operating profit surged by 40.1% to KRW 73.452 billion. The net income showed a remarkable growth of 84.1%, totaling KRW 76.718 billion, compared to the previous year. This positive outcome is attributed to the steady growth in the performance of existing products such as Atozet, Prolia, Gliatirin, high-dose vitamins like BenfoBell, as well as new products like Exiglues and LucenBS.
Hanmi Pharmaceutical's sustained growth in sales can be attributed to competitive improved and combination drugs, specializing in medicines like Rosuzet and the Amosartan family. Additionally, the continuous improvement of the company's specialized pharmaceuticals has led to enhanced performance, coupled with the positive developments of its Beijing Hanmi Pharmaceuticals subsidiary in China. During the first half of the year, Hanmi Pharmaceutical achieved a 10.3% increase in sales compared to the same period last year, reaching KRW 703.9 billion. The operating profit also saw a 28.6% increase, amounting to KRW 93.1 billion.
Daewoong Pharmaceutical achieved sales of KRW 599.4 billion during the first half of the year, driven by the positive performance of its three major new drugs: Fexuclue, Enblo, and Nabota. This performance indicates the company's potential to enter the 1 trillion KRW club this year. The first-half operating profit recorded an 11.3% increase compared to the same period last year, reaching KRW 67.2 billion. Similarly, the net income experienced a 28.7% increase, totaling KRW 49.2 billion.
Following the spin-off of Dong-A ST, Dong-A Socio Holdings, which entered the 1 trillion KRW club for the first time last year after the separation, also signaled its potential to maintain its presence in the club this year. This was supported by its main subsidiaries' improved performances, including Dong-A Pharmaceutical, leading to an 11.6% increase in sales compared to the same period last year, reaching KRW 540.4 billion.
Meanwhile, while all other pharmaceutical companies in the 1 trillion KRW club continued their growth momentum, Green Cross struggled with lackluster performance during the first half of the year. The total revenue declined by -6.9% compared to the same period last year, amounting to KRW 782.3 billion. Simultaneously, the operating profit plummeted by -81.6%, reaching KRW 10.1 billion, and the net loss reached -KRW 19.4 billion, indicating a shift to deficit. This downturn is explained as a result of increased R&D investments by Green Cross.