Boryung corrected its fourth-quarter last year consolidation revenue from about 264.0 billion won to 245.3 billion won and disclosed it on the 13th. It corrected operating profit from 19.8 billion won to an operating loss of 600 million won.
Boryung filed an administrative suit against the Ministry of Health and Welfare to cancel the price cut for its hypertension drug Kanarb, but lost in the first trial the previous day. Kanarb is a flagship product that accounts for 15% of Boryung's revenue. Boryung said it plans to appeal.
A Boryung official said, "We plan to continue our legal arguments in the higher courts, but if we ultimately lose in the third trial, we will have to provide refunds due to the price cut," adding, "Because reflecting it all at once in the financial statements could have an impact, we set it as a provision liability starting in the fourth quarter last year and reflected it." Boryung explained that the actual amount could change depending on the final court ruling.
Kanarb is a domestically developed new drug by Boryung that received approval in 2010. For hypertension, many patients do not see their blood pressure fall with just one medication, so other drugs are prescribed together. Kanarb has expanded its reach by creating fixed-dose combination generics that combine such products into one.
Kanarb's compound patent expired in 2023, and competitors jumped into developing generics. Ahead of the generic launches, in Jun. last year the ministry announced it would lower Kanarb's price from 439 won to 307 won for the 30 mg strength. The 60 mg would be cut from 642 won to 450 won, and the 120 mg from 758 won to 531 won.
Boryung objected to the ministry's price cut and filed a suit with the Seoul Administrative Court to cancel the reduction order, but it was not accepted. However, if it appeals and petitions to the Supreme Court to reach the second and third trials, it is expected to be able to defend the price at least until the lawsuit's conclusion is finalized.