Daewoong recovers with record 2Q sales of ₩289.7 billi

2Q sales revenue reach ₩289.7 billion, operating profit ₩18.7 billion

Expands sales by over fourfold by resolving ‘uncertainty’ of its ‘Nabota’

Recognized technology fee of ₩11.1 billion accrued by ‘Fexuprazan’

Daewoong has continued its good performance for 2 consecutive quarters.

 

By overcoming the heavy blows it took from the impurity issue in ranitidine and the lawsuits from its botulinum toxin strain dispute, the company was able to raise its quarterly sales to the highest level despite the COVID-19 crisis.

 

Daewoong Pharmaceuticals has posted its operating profit of ₩26.7 billion in Q2 this year and marked a turnaround compared to the same quarter of the previous year.

 

The company turned into a profit this quarter with its sales revenue increasing 20.8% to ₩273.1 billion and a net income of ₩14.5 billion.

 

Its cumulative sales revenue in the first half of this year was ₩514.7 billion, a 13.3% year-on-year increase.

 

Daewoong Pharmaceuticals had suffered from a poor performance last year.

 

The detection of impurities in the heartburn treatment ingredient ranitidine led to a large sales gap in its key product ‘Albis.’ Also, the company had spent much expense in lawsuit over the botulinum toxin strain dispute with Medytox.

 

In this year, the company has seen an improvement in its profitability with the revenue accrued from ‘Fexuprazan,’ which the company is developing as a treatment of gastroesophageal reflux, and the risk from ‘Nabota’ lawsuits being resolved.

 

Also, the increase in sales became greater due to strong performance in the domestic market and in exports.

 

Sales of the botulinum toxin product ‘Nabota’ has more than quadrupled in Q2 to record ₩23.2 billion, compared to the ₩5.6 billion in Q2 last year.

 

With the risk from suits in the U.S.

 

fully resolved, its U.S.

 

market share has started to expand in earnest, and Daewoong Pharmaceuticals is also stepping up its efforts to expand to new markets overseas for ‘Nabota,’ including in Latin America and the Middle East.

 

Sales in the prescription drugs sector recorded ₩196.1 billion, an 8.7% increase compared to the ₩179.4 billion in the same period of the previous year.

 

Sales of Daewoong’s self-developed drugs including the liver drug ‘Ursa (ETC),’ anticancer drug ‘Luphere Depot,’ and combination hyperlipidemia drug ‘Crezet,’ as well as the drugs it introduced to Korea such as the anti-diabetic ‘Forxiga,’ anti-coagulant ‘Lixiana,’ and its 3-drug combination for hypertension ‘Sevikar’ had all increased evenly.

 

In the OTC sector, the company recorded average sales - from ₩29.6 billion in the same period last year to ₩28.6 billion this year.

 

Its high-dose vitamin B complex, ‘Impactamin,' and the liver function enhancer ‘Ursa(OTC)’ have maintained stable sales.

 

Also, the technological fee from R&D projects has become a new source of revenue for the company.

 

In Q2, the company made ₩11.1 billion from a U.S.

 

licensing-out contract for ‘Fexuprazan,’ a new drug for gastrointestinal reflux.