HanAll Biopharma said that it recorded 28 billion won ($23.9 million) in sales in the third quarter of this year, a 17 percent increase from the same period of 2018. The company also registered 4.5 billion won in operating profit, up a drastic 115 percent.
“The third-quarter earnings are attributable to the inflow of milestone technology fees and the expansion of drug sales as the clinical trials of our biotech drugs, which were exported in 2017, are proceeding smoothly,” the company said. “During this period, sales of pharmaceuticals amounted to 24.5 billion won, and royalty income was 3.4 billion won.”
Notably, royalty income, which has no cost of goods sold, grew 103 percent compared to 2018, contributing to profitability, the company added.
In 2017, the company received $34 million by licensing out its new biotech drugs (HL161, HL036) to Roivant Sciences and Harbour BioMed. Also, depending on the stage of development, the company will receive milestones and royalties up to $500 million.
Revenue from technology exports continued to increase from 4.5 billion in 2017, 6.1 billion in 2018, and 11.9 billion until the third quarter of 2019, it said. Operating profit ratio, which rose 4.1 percent in 2017 and 6 percent in 2018, surged 17.1 percent in the first nine months of 2019.
“As new drug development proceeds smoothly after licensing out new bio-drugs, royalty income is steadily rising, which, in turn, has led to an increase in earnings,” a company official said. “Such profit structure is different from the profit structure of traditional Korean pharmaceutical companies and means that the company is transforming into a profitable R&D company."