Despite the challenges posed by the prolonged medical crisis and economic downturn, South Korean pharmaceutical companies have achieved remarkable success in 2023. Following the lead of major players who surpassed 4 trillion in sales, small and medium-sized enterprises (SMEs) in the pharmaceutical sector have also reported record-breaking performances. This positive trend across the industry has raised market expectations for continued growth in the current year.
According to data from the Financial Supervisory Service's electronic disclosure system, Samjin Pharmaceutical recorded sales of 308.4 billion won and operating profit of 32.2 billion won in 2023. This represents an increase of 5.6% and 57.3% respectively compared to the previous year. This is the first time since its establishment that Samjin Pharmaceutical has exceeded 300 billion won in sales. The company attributed this achievement to the balanced growth of all business divisions.
The increase in sales of prescription drugs such as the antiplatelet agent Plaris Tablet, Samjin Taurolin Injection, and Nospan Patch, as well as over-the-counter drugs such as the appetite stimulant Trestan and the anti-anxiety drug Anjeong-ek, contributed to the strong performance. The increase in sales of Magbooster Shot through convenience store distribution also played a significant role.
Samjin Pharmaceutical's success is attributed to its efforts to reduce costs and secure additional operating profit. In fact, selling, general and administrative expenses have been significantly reduced. A company representative said, "Operating profit increased due to improved cost of sales, and profit before income tax and net profit also increased due to corporate tax refunds."
Samil Pharmaceutical, which entered the biosimilar market, also achieved its highest sales performance since its establishment. The company recorded consolidated sales of 219.8 billion won and operating profit of 200 million won in 2023. Sales increased by 11.9% compared to the previous year, but operating profit decreased by 97.3% due to increased one-time expenses from CDMO investment.
Samil Pharmaceutical's sales growth was driven by existing product lines such as the cirrhosis treatment Livact and the hepatitis treatment Livide, as well as newly launched products such as Levakey and Apilivu. In particular, Apilivu, a biosimilar of Eylea developed by Samsung Bioepis, has continued its growth trend since its launch in May 2023, recording sales of 1 billion won in the first month.
A Samil Pharmaceutical representative explained, "While both sales and operating profit showed steady growth on a separate basis, operating profit was sluggish due to the reflection of the Vietnamese production corporation, which is promoting the global contract manufacturing (CMO) business, in the performance."
Korea United Pharmaceutical also achieved its best-ever performance in 2023, with sales of 288.7 billion won and operating profit of 56.3 billion won, thanks to the launch of new products and the growth of existing modified drugs such as Silostan CR.
A Korea United Pharmaceutical representative said, "The steady growth of modified drugs such as Silostan CR contributed significantly to sales. Six products, including Rabemini Tablet, exceeded 10 billion won in sales. We will secure continuous growth momentum with about 30 modified drug pipelines to be released in the future."
Jinyang Pharmaceutical also achieved its best-ever performance in 2023, with sales of 115.3 billion won and operating profit of 13.7 billion won, thanks to increased sales of all prescription drug (ETC) products. Sales increased by 23% compared to the previous year, and operating profit increased by 51% compared to the previous year. ETC sales accounted for 90% of total sales, with balanced growth across all ETC products.
In particular, domestic sales of circulatory system drugs, including Cribix Tablet, which accounted for the largest portion of Jinyang Pharmaceutical's sales, increased by about 21% compared to the same period last year (based on cumulative sales in the third quarter). Sales of digestive system drugs, including Eszol Tablet, increased by 21%, and sales of central nervous system drugs, including Acecol, increased by 18%. The largest increase was in metabolic drugs, including Miaril Tablet, which increased by 63% compared to the previous year.
Jinyang Pharmaceutical said, "Sales increased due to increased prescriptions of prescription drugs in general hospitals, and profits were reflected due to the revaluation after acquiring investment real estate."
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