Janssen Korea breaks through KRW 300 bln for the first time

Operating profit reached 37.9 billion won last year, 111.7% surge from the year before

Remicade and other autoimmune disease treatments generate 14.1% more than previous year

Janssen Korea’s yearly sales revenue (left) and operating profit (right) (Unit: KRW 100 million) Source: Financial Supervisory Service and Yuhan IR

Janssen Korea broke through the 300 billion won-line in Korea for the first time.

 

Leveraged by outstanding performance of star products like Remicade, Simponi and Stelara, the global pharmaceutical company manifested impressive sales revenue and operating profit.

 

According to performance data of last fourth quarter provided by Yuhan on Mar.

 

2, Janssen Korea has made overall 311 billion won last year with 17.5 percent increase from the previous year.

 

36 years since the Korean office was founded, Janssen Korea has for the first time generated more than 300 billion in a year.

 

The operating profit was surged by 111.7 percent and reached 37.9 billion won.

 

Compared to 38.7 billion won made in 2007, last year was the second most profitable year.

 

However, the figure could change in coming months as it is from tentative data before an audit by an accounting firm.

 

According to the partnership investment deal inked between Yuhan and the U.S.-based Johnson and Johnson (J&J) in May of 1983, Janssen Korea was established.

 

J&J owns 70 percent of the share (746,760 shares), and Yuhan as a second largest shareholder owns the rest of 30 percent (320,040 shares) of the share.

 

Due to equity method, Yuhan has been disclosing its associate, Janssen Korea’s business performance via quarterly IR data since the second quarter of 2014.

 

Yuhan receives a set ratio of dividend from Janssen’s net profit.

 

Yearly sales revenue of Janssen Korea’s major pharmaceutical products (Unit: KRW 100 million) Source: IQVIA

Autoimmune disease treatments like Remicade (infliximab), Simponi (golimumab) and Stelara (ustekinumab) have led the massive revenue hike.

 

Pharmaceutical market research firm IQVIA found the three products have generated total of 99.3 billion won last year with 14.1-percent increase.

 

Compared to 2015, the revenue volume has leapt by 93.3 percent.

 

The sales revenue of interleukin antagonist Stelara showed the steepest surge.

 

Making 22.2 billion won last year, Stelara’s sales volume was boosted by 54.2 percent.

 

The figure has quadrupled since 2015.

 

The company’s top seller, Remicade also made 46 billion won last year with 2.0-percent increase than the year before.

 

Although the yearly increase was not so significant, Remicade is the company’s biggest cash cow as it leads the TNF-alpha inhibitor market in Korea.

 

Remicade’s follow-on TNF-alpha inhibitor Simponi has been absorbing the market share fast since its release in 2013.

 

Simponi also climbed up 13.0 percent last year and generated 31.0 billion won.

 

The medication, available in both subcutaneous and intravenous injections, stepped up above Pfizer’s Enbrel and sold the third most volume in the TNF-alpha inhibitor market.