Seven drugmakers with new CEOs this year showed mixed results in the first-quarter performance.
The seven are Yungjin Pharmaceutical, Hugel, Hyundai Pharm, Sinsin Pharmaceutical, Dongwha Pharm, Boryung Consumer Healthcare, and Jeil Pharma Holdings.
Among them, Korea Biomedical Review compared first-quarter earnings of the five, excluding those of Boryung Consumer Healthcare and Jeil Pharma Holdings. The two are not obliged to disclose earnings publicly.
With new CEO Yoo Kwang-ryul appointed at the general shareholders’ meeting early this year, Dongwha Pharm posted 76.9 billion won ($71.2 million) sales in the first quarter, up 26.9 percent compared to 60.6 billion won a year earlier. Operating profit rose 16.3 percent year-on-year to 5.4 billion won, with net profit reaching 4.7 billion won.
Yoo previously led Pfizer Korea Consumer Healthcare, DKSH Korea Healthcare, and Geoyoung.
Hugel’s business is also going smooth, after choosing Sohn Ji-hoon, former CEO at Baxter Korea and Dongwha Pharm, as the new president. Hugel’s first-quarter revenue surged 62.2 percent to 31.7 billion won from 22.2 billion won a year earlier. Operating income was up 14.2 percent to 16.3 billion won, and net income, 16.9 billion won.
Hyundai Pharm recently drew attention after promoting Lee Sang-jun, 42, a third generation of the company’s founder, to the president early this year. Lee is the grandson of the late founder Lee Kyu-suk and the son of the current chairman Lee Han-koo.
In the first quarter since Lee took the helm, Hyundai Pharm’s revenue increased 2.6 percent to 31.7 billion won in the first quarter, compared to 30.9 billion won a year earlier. However, operating profit plunged 55.5 percent to 367 million won from 825 million won during the cited period. Net income climbed 11.7 percent to 412 million won.
On the other hand, Yungjin Pharmaceutical failed to improve earnings in the first quarter, after naming Lee Jae-jun, former executive director at Dong-A ST’s global business division, as CEO.
Yungjin Pharm’s revenue fell 1.1 percent to 48 billion won in the first quarter, compared to 48.5 billion won a year earlier. Operating income more than halved to 1.1 billion won, 56.7 percent down from 2.7 billion won a year earlier. Net profit also plummeted 78.2 percent to 343 million won from 1.5 billion won.
Sinsin Pharm picked Lee Byung-ki, the eldest son of the founder and chairman Lee Young-soo, as CEO but first-quarter results were poor. The new CEO previously served as non-regular auditor and was involved in new business development.
Sinsin Pharm’s sales went down 4.8 percent to 15 billion won in the first-quarter from 15.7 billion won a year earlier. Operating profit also declined 35.8 percent year-on-year to 883 million won, and net profit was only 779 million won, which did not reach the level of the previous year.