Boryung(003850) succeeded in achieving top-line growth in the second quarter by reflecting global sales of the anticancer drug "Taxotere." However, operating profit edged down after reflecting a provision related to the price cut of the hypertension treatment "Kanarb."
Boryung disclosed on the 6th that, on a consolidation basis, it posted second-quarter sales of 279.6 billion won and operating profit of 23.8 billion won. Compared with the same period a year earlier, sales rose 11.2%, but operating profit fell 6.2%.
On a cumulative first-half basis, sales were 535 billion won and operating profit was 44 billion won. Both increased 8.7% and 21.1%, respectively, from a year earlier, marking the highest half-year results on record.
The second-quarter sales increase was largely due to the full reflection from June of global sales of the cytotoxic anticancer drug Taxotere, acquired last year from France's Sanofi. Boryung has secured the worldwide distribution rights, marketing authorization, manufacturing rights, and trademark rights for Taxotere, including in Korea.
Supply of cytotoxic anticancer contract development and manufacturing (CDMO), anchored by the Yesan Campus, also began in the first half, diversifying revenue sources. Boryung's strategy is to expand both the global oncology business and the CDMO business by leveraging its in-house manufacturing capabilities.
New products also lifted results. The hypertension and dyslipidemia combination drug "Kanarb Jet," launched on May, supplied all 3.7 billion won of its initial first-half volume.
Profitability, however, was affected by a one-off accounting expense. Boryung said operating profit declined after it reflected a provision related to the price cut of the hypertension treatment Kanarb in the second-quarter results. Even so, the Kanarb family posted 38.8 billion won in second-quarter sales, and excluding the provision, grew 23% from a year earlier, the company said.