Major domestic pharmaceutical companies and biotech corporations are steadily increasing cash dividends ahead of regular shareholders meetings in March. With many pharmaceutical and biotech corporations achieving record results last year on the back of overseas business performance, they raised per-share dividends or total dividend aggregates. The government and ruling party's pressure for shareholder-friendly policies also led corporations to expand shareholder returns by sharing more profits with shareholders.
On the 23rd, according to the Financial Supervisory Service's electronic disclosure system, among pharmaceutical companies and biotech corporations with more than 1 trillion won in sales last year, Yuhan, GC Pharma, and Celltrion will pay dividends. These corporations posted record results and are returning profits to shareholders.
◇ Pharmaceutical companies boost dividends on record profits
On the 23rd, according to the Financial Supervisory Service's electronic disclosure system, Yuhan, which posted annual sales in the 2 trillion won range for the second straight year last year, disclosed dividends of 600 won per common share and 610 won per preferred share. The total dividend aggregates come to 44.9 billion won. Both the per-share dividend and the total dividend aggregates increased about 20% from a year earlier.
Yuhan booked milestone income for its lung cancer drug Leclaza in China last year and, alongside increased prescriptions of ethical drugs, delivered its best-ever results. On a consolidation basis, Yuhan posted sales of 2.1866 trillion won, up 5.7% from a year earlier, and operating profit of 104.4 billion won, up about 90%.
JW Pharmaceutical will pay a dividend of 500 won per common share, up 11% from a year earlier. The total dividend aggregates also rose 9% to about 12 billion won. Bolstered by increased prescriptions for the dyslipidemia (hyperlipidemia) treatment Livalo and the fixed-dose combination Livalozet, JW Pharmaceutical posted sales of 774.8 billion won and operating profit of 93.6 billion won last year on a consolidation basis. Sales rose 8% and operating profit 14% from a year earlier.
Ildong Pharmaceutical returned to paying dividends for the first time in seven years since 2019. It decided on a dividend of 200 won per common share. Although Ildong Pharmaceutical's sales fell about 8% year over year to 566.9 billion won last year, operating profit rose about 49% to 19.5 billion won. Net profit also swung to a surplus at 23.7 billion won. The company said profitability improved through expense efficiencies such as reducing fixed costs by reorganizing its business, and that it would pay dividends to return value to shareholders.
Myung In Pharm, which went public in Oct. last year, disclosed a dividend of 1,500 won per share. As of the end of the third quarter last year, founder Chair Lee Haeng-myung and related parties held 73.8% equity.
◇ Alteogen pays first dividends since its founding
Celltrion, a leading domestic biotech corporation, will pay a cash dividend of 750 won per common share. Although the per-share dividend is the same as last year, the total dividend aggregates increased from 153.8 billion won to 164.0 billion won. Celltrion said it decided on the largest-ever dividend payment to return value to shareholders.
Celltrion improved profitability as sales of high-margin products ramped up last year. On a consolidation basis, Celltrion's sales rose 17% year over year to 4.1625 trillion won, and operating profit jumped more than 137% to 1.1685 trillion won.
Celltrion is pursuing tax-exempt capital reduction dividends. In the case of capital reduction dividends, a method of reducing capital reserves and paying in cash, individual shareholders do not have to pay dividend income tax.
Alteogen, a biotech platform corporation, will pay dividends for the first time since its founding. It will pay 371 won per share for both common and preferred shares, with total dividend aggregates of about 20 billion won.
After turning profitable in 2024, Alteogen posted sales of 202.1 billion won and operating profit of 114.8 billion won last year on the back of expanded technology exports. Sales rose 117% and operating profit 275% from a year earlier, marking record results. The operating margin jumped to 57%.
PharmaResearch, a corporation specializing in aesthetic dermatology, decided on a dividend of 3,700 won per common share. That is about 236% more than the previous year (1,100 won). The total dividend aggregates, including common and preferred shares, amount to 42.8 billion won. That is equivalent to 25% of PharmaResearch's net profit (170.6 billion won) last year. As domestic and overseas sales of the medical device Rejuran and the cosmetic Rejuran Cosmetic increased, PharmaResearch's sales last year rose 53% year over year to 535.7 billion won.
Kwon Hae-soon, an analyst at Eugene Investment & Securities, said, "The results of pharmaceutical companies and biotech corporations expanding overseas appear to be returning to shareholders through increased dividends."