KOREAPHARM Reports 3.5 Billion Won Operating Profit in H1, Up 280% Year-on-Year

KOREAPHARM's sales in the first half of this year reached 50.5 billion won, a 14.4% increase compared to the same period last year, while operating profit surged by 280.1% to 3.5 billion won.

According to KOREAPHARM on August 13, sales for the second quarter grew by 10.8% year-on-year to 25.9 billion won. During the same period, operating profit reached 2.2 billion won, marking a dramatic increase — approximately 27 times higher than the previous year — indicating a notable improvement in performance.

The robust results for the first half were driven by an increase in Contract Manufacturing Organization (CMO) volume and strong sales of in-licensed pharmaceutical products. Stable sales growth in existing Central Nervous System (CNS)-focused prescription drugs provided a foundation, while consignment and product sales utilizing state-of-the-art manufacturing facilities and distribution networks saw significant increases. Additionally, efficient sales strategies and systematic cost management helped reduce selling and administrative expenses, contributing to improved profitability.

The company is also accelerating its entry into the electronic medicine and Digital Therapeutics (DTx) sectors as part of securing mid- to long-term growth drivers. Last month, it entered into a domestic joint business agreement with Ybrain, a psychiatric electronic medicine specialist, for the EEG diagnostic system 'MindScan' and the transcranial direct current stimulation system 'MindSteam.' In addition, KOREAPHARM has signed an exclusive domestic sales agreement with Emotive for the Attention-Deficit Hyperactivity Disorder (ADHD) digital therapeutic device 'StarLucas,' and is launching an aggressive push into this market.

A KOREAPHARM representative said, "We were able to significantly improve profitability in the first half thanks to strong results from the consignment business, product sales, and efficient management of selling and administrative expenses," adding, "Based on our stable business structure in CNS therapeutics, we will actively pursue investments and partnerships to secure next-generation growth engines such as digital therapeutics."

This content was produced with the assistance of AI translation services.