BioToxTech Subsidiary Achieves First Quarterly Profit... Orders Exceed 60 Billion Won

BioToxTech, the top preclinical contract research organization (CRO) in Korea specializing in toxicology studies, achieved both revenue growth and improved profitability in the first half of this year, fueled by strong performance from its subsidiary and an increase in new contracts.

According to BioToxTech on August 19, revenue for its subsidiary KeyPrime Research reached 5.8 billion won in the second quarter of this year, with operating profit at 400 million won, marking its first quarterly operating surplus.

KeyPrime Research demonstrated its global competitiveness by securing more than 60% of its 17.2 billion won in new contracts from overseas clients in the first half of the year. This sharp increase in GLP (Good Laboratory Practice) orders from international biotech firms is attributed to the full-scale operation of its world-class non-human primate (NHP) infrastructure established in Osong, North Chungcheong Province in 2022.

BioToxTech is also preparing for a leap in its performance in the second half of the year, backed by a robust order backlog. On a standalone basis, BioToxTech recorded 16.1 billion won in revenue for the first half, an 8% increase compared to the same period last year. New orders for the first half totaled 19.8 billion won, up 17%, and the order backlog grew by 18% to 43.5 billion won. As these orders are sequentially recognized as revenue starting from the second half, there is a high possibility that BioToxTech will shift to an operating surplus on a standalone basis during this period.

On a consolidated basis, first-half revenue for BioToxTech and KeyPrime Research surged 26% year-on-year to 26.3 billion won. Operating loss for the same period was 2 billion won, representing a reduction of approximately 40% compared to the previous year.

A representative from BioToxTech stated, "As our substantial order backlog is reflected in revenue sequentially from the second half of this year, we expect a full-fledged turnaround in performance. Leveraging our capabilities for end-to-end preclinical total services across a wide range of species—including primates, rodents, and non-rodents—as well as toxicology, efficacy studies, and bioanalysis, we aim to deliver both revenue growth and profitability to meet market and shareholder expectations."

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