South Korea’s Daewoong Pharmaceutical Co. reported a near 30-percent on-year drop in operating profit in the April-June period despite record quarterly revenue due to increased market spending for new drugs.
The company in a regulatory filing on Monday said its operating profit from April to June reached 10 billion won ($9 million), down 28.3 percent from a year ago. Net income plunged 43.8 percent on year to 7.68 billion won, while sales added 7.1 percent to 238.2 billion won over the cited period.
On Wednesday, shares of Daewoong Pharmaceutical ended down 1.56 percent at 189,000 won.
Daewoong Pharmaceutical attributed its losses to lower profitability from depreciation expenses after its new plant in Osong became operational and marketing costs for its new products.
Its prescription drug business saw an 8.9 percent on-year increase in earnings thanks to brisk sales of its drugs like Gasmotin Tab and Anpl-one SR Tab and newly launched Forxiga and Sky Zoster vaccine.
Drug exports were down 7.6 percent, but over-the-counter drug sales gained 9.4 percent on robust demand for its mainstay product Ursa Tab.
Meanwhile, Daewoong Pharmaceutical is planning active marketing activities for its self-developed botulinum toxin Nabota prior to its release in the United States in the first quarter of next year. Nabota would be the first high-purity 900 kDa toxin launched in the U.S. after Botox developed by Ireland-based pharmaceutical company Allergan, according to a company official.
NH Investment & Securities in its report on Wednesday suggested the company’s stock price target at 270,000 won and investment opinion of “Buy”.
By Kim Hye-soon and Lee Ha-yeon
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