KM Pharmaceutical Sees 13% Sales Growth in First Half...Accelerates Overseas Expansion with OEM and ODM

KM Pharmaceutical, a company specializing in life care, is continuing its external growth by expanding its OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) businesses for quasi-drugs and cosmetics. As orders from domestic and overseas pharmaceutical and household goods companies are increasing and overseas sales of its own brands are also expanding, expectations are rising for improved performance in the second half of the year.

On August 14, KM Pharmaceutical announced that its sales in the first half of this year reached KRW 8.3 billion, representing a 13.4% increase compared to the same period last year.

The company attributed this sales growth to increased OEM and ODM orders for quasi-drugs and cosmetics from domestic and overseas pharmaceutical and household goods companies. The company explained that not only have production volumes from existing customers grown, but it has also secured new customers, thereby expanding its order base.

KM Pharmaceutical is nurturing its OEM and ODM business as a core growth engine, leveraging more than 20 years of accumulated R&D capabilities and manufacturing expertise. The company is also strengthening its manufacturing capacity to ensure customized product development for each client and stable supply.

The company is accelerating its entry into overseas markets. Recently, it completed the procedures to maintain compliance with the U.S. FDA’s current Good Manufacturing Practice (cGMP) standards for quasi-drug manufacturing and quality control, securing a foundation for production and exports aimed at the North American market.

In the Asian market, KM Pharmaceutical has signed a series of new contracts this year. In January, it entered into a product supply agreement worth approximately KRW 1 billion per year with cosmetic brand GeneralBrands. In February, it signed a distribution agreement with Malaysia’s major retailer Cosway. In March, it inked a contract with Thailand’s ADMI, a medical aesthetics and dermatology specialist institution, for cosmetics and medical aesthetic products.

Overseas sales of its own brands are also on the rise. The company’s children’s oral care product, ‘Pororo Toothpaste,’ shipped approximately 180,000 units to Vietnam in the second quarter alone this year. The order volume for the third quarter is also finalized at a similar level, and the company expects the cumulative shipment for the year to surpass 500,000 units. In China, about 300,000 units were shipped from January to April this year.

KM Pharmaceutical plans to expand its export regions to emerging markets such as the Middle East and South America in the second half of the year. The company will also strengthen its own brand business. It is preparing to launch related products by acquiring the license for the 'Hatchi' character toothpaste and toothbrush, and it will broaden its product lineup to include the oral care brand ‘POMGLE,’ personal care brand ‘XEROCIPHY,’ as well as functional cosmetics and household goods.

Seungwon Baek, CEO of KM Pharmaceutical, stated, “The sales increase in the first half is a meaningful result, achieved by strengthening our R&D and production competitiveness, as well as expanding our operations both domestically and abroad. In the second half, we will focus all our resources on securing new OEM and ODM orders and expanding sales of our own brands to accelerate improvements in our performance.”

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