Chong Kun Dang pharmaceutical(185750) said on the 31st that its standalone operating profit in the second quarter this year was tallied at 19.9 billion won, down 10.1% from the same period last year. Revenue for the same period rose 10.7% to 475.4 billion won.
Cumulative first-half revenue came to 923.1 billion won, with operating profit of 37.5 billion won. Compared with the first half of last year, revenue increased 11.4% and operating profit rose 7.1%.
Revenue growth was led by key in-licensed products. New co-promoted items, including Wegovy, an obesity treatment from Denmark's Novo Nordisk, Godex, a liver disease treatment from Celltrion Pharm, and Fexuclue, a gastroesophageal reflux disease therapy from Daewoong Pharmaceutical(069620), showed solid growth and contributed to higher sales. However, due to increased cost burdens, second-quarter operating profit decreased from a year earlier.
Chong Kun Dang pharmaceutical will also make large-scale investments to expand its biopharmaceutical business. On June it finalized a facilities investment to create a biopharmaceutical integrated research complex in the Baegot district of Siheung. The investment totals about 500 billion won, combining 392.5 billion won in facility investment and 94.9 billion won for land acquisition. Specific business areas and the configuration of production and research facilities have not yet been disclosed.
Subsidiary CKD BiO(063160) saw profitability deteriorate. The second-quarter operating loss was 5 billion won, swinging to a deficit from an operating profit of 2.9 billion won in the same period last year. Revenue was 41.1 billion won, down 0.3% from 41.2 billion won a year earlier, and the net loss widened to 5.4 billion won.
Cumulative first-half revenue was 81.8 billion won, down 2.3% from a year earlier. The operating loss was 6.7 billion won, turning to a deficit from an operating profit of 5 billion won in the first half of last year, and the net loss also turned to a deficit, posting 7.4 billion won compared with a net profit of 400 million won a year earlier.