Combined Q2 Revenue of Top Five Pharma Companies Rises 9.7%, Operating Profit Jumps 34.4%

[NEWSMP] The combined revenue of South Korea’s five leading pharmaceutical companies increased 9.7% in the second quarter, while their operating profit surged 34.4%, pushing their combined operating margin into double digits. (based on separate financial statements)

Hanmi Pharm, in particular, posted revenue growth of nearly 50%, driven by licensing revenue from sonefpeglutide. Chong Kun Dang, Yuhan Corporation and Daewoong Pharmaceutical also each recorded double-digit revenue growth.

In contrast, GC Biopharma saw its revenue plunge by nearly 20% due to delays in the supply of influenza vaccine drug substance and Hunterase, among other products. The company also posting an operating loss, highlighting a stark divergence in performance.

According to the companies’ respective reports, the combined revenue of the top five pharmaceutical companies—Yuhan Corporation, Chong Kun Dang, Hanmi Pharm, Daewoong Pharmaceutical, and GC Biopharma—reached KRW 2.2131 trillion in the second quarter, up 9.7% from the same period a year earlier.

In particular, Hanmi Pharm's revenue surged 47.3%, surpassing KRW 400 billion, driven by licensing revenue from sonefpeglutide.

Yuhan Corporation and Daewoong Pharmaceutical also posted double-digit growth, with revenue exceeding KRW 600 billion and KRW 400 billion, respectively. Chong Kun Dang likewise achieved double-digit growth, bringing its revenue close to KRW 500 billion.

Meanwhile, GC Biopharma’s second-quarter revenue fell 19.2% year over year to KRW 316.5 billion, as delays in the supply of key products pushed the related sales into the third quarter.

For the first half of the year, Yuhan Corporation was the only company among the five to generate more than KRW 1 trillion in revenue, with sales rising 9.6% year over year to KRW 1.1236 trillion.

Chong Kun Dang's first-half revenue grew 11.4%, surpassing KRW 900 billion, while Daewoong Pharmaceutical posted 8.2% growth, pushing its revenue above KRW 700 billion. Hanmi Pharm also recorded strong growth of 21.1%, bringing its revenue close to KRW 700 billion.

By contrast, GC Biopharma's first-half revenue declined 12.4% year over year, but remained above KRW 600 billion.

In the second quarter, Hanmi Pharm's operating profit surged 195.9% year over year to KRW 128.7 billion, surpassing KRW 100 billion.

Yuhan Corporation's operating profit jumped 34.6% to KRW 61.4 billion, while Daewoong Pharmaceutical's rose 23.4% to KRW 77.1 billion, with both companies rebounding from sluggish results in the first quarter.

In contrast, Chong Kun Dang's operating profit declined 10.4% year over year to KRW 19.9 billion, while GC Biopharma posted an operating loss of KRW 2.9 billion.

Despite these mixed results, the five companies' combined operating profit surged 34.4% year over year to KRW 284.2 billion, while their combined operating margin reached 12.8%, entering double-digit territory.

For the first half of the year, Hanmi Pharm's operating profit jumped 75.6% to KRW 158.9 billion, while Daewoong Pharmaceutical’s operating profit remained roughly unchanged from a year earlier at KRW 104.5 billion. Both companies therefore recorded first-half operating profits exceeding KRW 100 billion.

Yuhan Corporation's operating profit increased 29.5% year over year to KRW 70.2 billion, while Chong Kun Dang's rose 7.1% from KRW 35.0 billion to KRW 37.5 billion. GC Biopharma, meanwhile, saw its operating profit plunge 96.8%, from KRW 61.7 billion to KRW 2.0 billion.

The five companies' combined first-half operating profit increased 7.9% year over year to KRW 373.1 billion, while their operating margin edged up from 9.1% to 9.2%.