Average R&D cost 8.5%... 0.2%p decreases than 2019
Hanmi Pharm leads by $54.1 billion… following Yuhan Corporation $35 billion, Green Cross $33.3 billion
Although the business activities of pharmaceutical companies have shrunk in the last quarter due to coronavirus, R&D (Research and Development) cost has increased.
According to the Newsmp analysis, 60 pharmaceutical corporations’ first-quarter R&D cost was found to be $352.9 billion in total which has increased by 4.4% compared to last year’s.
The average R&D cost per company is about $6 billion, however, the ratio of R&D to sales was at an average of 7.5% which shows a decrease than last year’s quarter.
By the company, except for Sinpoong Pharm, which was not counted for R&D expenses in the first quarter of last year, 41 out of 59 companies increased R&D expensed while 18 companies decreased.
Among them, Ildong Pharm’s R&D expenses increased by $3.7 billion, Donga-st and Ilyang Pharm $2.8 billion, JW Pharm $1.7 billion, Huons Global $1.4 billion, Dongkoo Bio & Pharm $1.3 billion, Samchundang Pharm and ST Pharm $1.1 billion, and JW Life Science $1.2 billion, and this presents R&D cost of 9 corporations increased more than $1 billion.
On the other hand, Hanmi Pharm and Daewoong Pharm’s R&D expenses decreased by $5.2 billion and $1.4 billion resulting in a decrease of more than $1 billion during the same time.
Still, Hanmi Pharma is the only company that remained R&D cost over $50 billion, $54.1 billion, when R&D expenses decreased more than $5 billion.
Yuhan Corp. spent $35 billion, Green Cross $33.3 billion and Chong Kun Dang Pharm $30 billion and Daewoong Pharm expended $29.6 billion, Donga-st $18.6 billion, Ildong Pharm $15.5 billion, and JW Pharm $10.7 billion resulting corporations that expended more than $10 billion in R&D cost.
Ilyang Pharm and Boryung Pharm overran $8 billion followed by Daewon Pharm $7 billion, Korea United Pharm, Huons Global Pharm and Samjin Pharm about $6 billion, and Bukwang Pharm $5.3 billion.
Jeil Pharm, Shinpoong Pharm, Handok Pharm, and DongKook Pharm by $4 billion, and Yungjin Pharm, Dong-wha Pharm, Ahn-gook Pharm, Samchundang Pharm, ST Pharm, Kyongbo Pharm, Dongkoo Bio Pharm, and Hyundai Pharm have reported by $3 billion.
Moreover, Hana Pharm, Kyungdong Pharm, Kwangdong Pharm, Hanall Bio Pharm, and JW Life Science spent $2 billion, and CKD Bio Pharm, BC World Pharm, DaeHwa Pharm, CMG Pharm, Dongsung Pharm, Kukje Pharm, Reyon Pharm, and Arlico Pharm expended over $1 billion for R&D cost.
Meanwhile, Hanmi Pharm, which had an R&D ratio of 20% alone in the first quarter of last year, retreated to 18.8%, but still in the lead.
Followed by ST Pharm with 17.6%, Bukwang Pharm 14.7&, Daewoong Pharm 13.0%, BC World Pharm 12.8%, Korea United Pharm 12.1%, Ilyang Pharm 11.5%, Ildong Pharm and Yuhan Corp. 11.2% and Samjin Pharm with 11.1%.
At the same time, Hyundai Pharm reported an R&D ratio of 10.9%, Green Cross 10.8%, CMG Pharm 10.7%, Daewon Pharm and Chong Kun Dang Pharm 10.3% and Ahn-gook Pharm 10.0%.
Also, Dongkoo Bio-Pharm, Hanall Bio-Pharm, Shinpoong Pharm, Donga-st, and Samchundang Pharm were above the average at 9%, while JW Pharm was at 8% and Huons at 7%.
Yungjin Pharm, Kyongbo Pharm, Dongsung Pharm, Hana Pharm, Chong Kun Dang Bio, Daehwa Pharm, Sinil Pharm, Boryung Pharm, Kyungdong Pharm, and Seoul Pharm were at 6%, and Dong-wha pharm, Samsung Pharm, Jinyang Pharm, and Sama Pharm were at 5% of R&D ratio.
Kukje Pharm, JW Life Science, and Reyon Pharm were at 4% range, Handok, DongKook Pharm, Arlico Pharm, Korean Drug Co., and Samil Pharm were at 3% range, Jeil Pharm, Choa Pharm, Ilsung Pharm, Yuyu Pharm, Sinsin Pharm, Union Korea Pharm, Kyungnam Pharm, and Celtrion Pharm were at 2% range.
In addition, Myungmoon Pharm, Kwangdong Pharm, Aprogen Pharm, and JW Shinyak were at 1% range, Wooridul Pharm, Hwail pharm, and Daihan were below 1%.