ST Pharm Posts 42% Increase in 2Q Operating Profit... “Commercialization of Oligo and Small Molecule Divisions”
Second Quarter Sales Reach 108.5 Billion Won, Up 59% Year-on-Year
“Full-Scale Operation of Large Production Line at Second Oligo Building in Second Half”
ST Pharm announced on the 27th that its sales for the second quarter of this year reached 108.5 billion won, with operating profit amounting to 18.3 billion won. These figures represent increases of 58.9% and 41.7%, respectively, compared to the same period last year.
Sales and operating profit surged significantly as commercialized products from the Oligo and Small Molecule business divisions began to be recognized in earnest. The company explained, “The cost ratio increased temporarily as fixed costs for a certain product, which required a long production period, were reflected all at once. However, this effect is only temporary.”
By business division, Oligo sales grew by 83% year-on-year to reach 79.6 billion won. Revenue generated from commercial projects totaled 49.7 billion won, accounting for 62% of total Oligo business division sales. Following the commencement of operations at the second Oligo production building, sales have been generated from a total of 13 new projects.
For the first half of the year, the company secured a total of 8 new Oligo projects and is aiming to win more than 7 additional projects in the second half. As of the end of last month, the Oligo order backlog amounted to approximately 300 million dollars (about 440.2 billion won).
The Small Molecule business division posted sales of 19.9 billion won, a 199% increase compared to the previous year. Sales growth was driven by two commercialized projects, including 2 billion won in linker sales for antibody-drug conjugates (ADC). As of the end of March, the order backlog stood at about 50 million dollars (approximately 73.4 billion won).
Meanwhile, ST Pharm plans to announce detailed results of the Phase 2a clinical trial of its new HIV treatment, STP-0404, at an academic conference this October.
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ST Pharm stated, “In the second half, commercial sales from our key Oligo and Small Molecule business divisions are expected to increase further,” adding, “With the full-scale operation of the large production line at the second Oligo building, we anticipate improved gross profit margins.”
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