Daewoong Pharmaceutical said Wednesday that it recorded sales of 943.5 billion won ($835.7 million) last year, up 8.9 percent from 2017. It also registered 30.8 billion won in operating profit, and 1.5 billion won in net profit.
|Daewoong's headquarters in Samsung-dong, southern Seoul.|
“Sales growth was driven by continued growth in ethical drug (ETC) and over-the-counter drugs,” the company said.
The ETC division recorded sales of 674 billion, up 12.3 percent from the previous year. “The sales of its flagship products such as Urusa, Nabota and Anpl-one continued to grow, and sales commissions for products such as zemiglo, Lixiana, and Forxiga also increased.
The OTC division also posted sales of 92.2 billion won, up 10.8 percent from the previous year.
The decline in operating profit was attributable to an increase in investment costs, such as depreciation, plant and labor costs, increased initial R&D costs, following the dedication of new plants.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), a more important cash flow indicator, was slightly down 5.3 percent year on year to 72.4 billion won. EBITDA is the sum of operating profit plus depreciation.
“Despite the accounting cost incurred due to continued investment in subsidiaries such as overseas research institutes, we believe that the long-term investment is needed to revitalize the market,” the company said.
R&D costs expanded more than 2.6 times from 43.4 billion won in 2009 to 114.3 billion won in 2017, spurring the development of new drugs by investing more than 10 percent of the company’s total revenues into R&D.
“In the short term, sales and profits are expected to grow riding on the global growth of Nabota, the company’s in-house developed botulinum toxin,” the company said. “Nabota is scheduled to go on sale this spring after winning approval from the U.S. Food and Drug Administration on Feb. 1.”
The company also expects to receive approval from the EMA during the first half of this year.
In the mid- to long-term growth pipeline, the company is strengthening its R&D capabilities by developing innovative new drugs such as antiphospholipid antibody-based anti-ulcer based prolyl-tRNA synthetase-based fibrosis treatment and dry eye syndrome treatment utilizing artificial intelligence.