Boryung's nine-month operating profit of 69.4 billion won tops last year's full total
In short
Boryung (보령) said on 22 October that its consolidated operating profit for the first nine months of the year was 69.4 billion won, more than its operating profit for all of last year. Third-quarter revenue rose 12.3% to 314.4 billion won, while third-quarter operating profit fell 13.4% to 25.5 billion won.
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Boryung (보령) said on 22 October that its consolidated cumulative operating profit for the first three quarters of the year was 69.4 billion won, above its operating profit for all of last year. A company official said the result was reached even though provisions for the Kanarb drug price lawsuit were included. Cumulative revenue was 849.4 billion won, up 10% from a year earlier, and the operating margin was 8.2%. [ 1 , 2 , 3 ]
For the third quarter alone, revenue was 314.4 billion won, up 12.3% from a year earlier. Operating profit was 25.5 billion won, down 13.4%. Boryung explained the decline as the effect of new-product marketing costs and higher labour costs. [ 1 , 2 , 3 ]
Revenue growth came from rising prescriptions of the Kanarb family of hypertension drugs, the co-promotion of Atozet, and Taxotel (탁소텔) sales at home and abroad. According to the market research firm UBIST, third-quarter Kanarb family prescriptions rose 7.1% from a year earlier, above hypertension market growth of 4.2%. Kanarbjet (카나브젯), launched in June, passed 1 billion won in monthly outpatient prescriptions in September, according to the reports. [ 1 , 2 , 3 ]
Asia Economy reported that Boryung began co-promoting Atozet last month under a contract with Korea Organon (한국오가논), expanding its dyslipidemia portfolio. The company plans to use its existing sales network and expects revenue from the co-promotion to grow. [ 2 ]
In oncology, Taxotel revenue for the third quarter was 27.7 billion won, of which 21.3 billion won was global and 6.4 billion won domestic. Yonhap and Chosun Ilbo said this was the first quarter with three full months of sales since the acquisition. Oncology cumulative revenue for the first three quarters was 221.4 billion won, up about 24% from a year earlier, according to Asia Economy and Chosun Ilbo. Asia Economy added that the cumulative gross margin improved to 41.4%. [ 1 , 2 , 3 ]
A Boryung official told Asia Economy that formulation improvements to Gemza (젬자) and Alimta (알림타) reflect the company's strengths in oncology drugs, and that profitability in the oncology division is expected to keep improving through in-house production and formulation improvements. [ 2 ]
Why it matters
The results come from the company's own announcement, which outlets reported with little added comment. They show higher sales driven by the Kanarb (카나브) family of blood pressure drugs, the Atozet (아토젯) co-promotion and cancer drugs, alongside lower quarterly operating profit.
Key facts
- Boryung's consolidated cumulative operating profit for the first three quarters was 69.4 billion won, above its operating profit for all of last year, the company said on 22 October. [ 1 , 2 , 3 ]
- Cumulative revenue was 849.4 billion won, up 10%, and the cumulative operating margin was 8.2%. [ 1 , 2 , 3 ]
- Third-quarter revenue was 314.4 billion won, up 12.3% from a year earlier, while operating profit fell 13.4% to 25.5 billion won. [ 1 , 2 , 3 ]
- Boryung attributed the third-quarter profit decline to new-product marketing costs and higher labour costs. [ 1 , 2 , 3 ]
- Kanarb family prescriptions rose 7.1% in the third quarter from a year earlier, against hypertension market growth of 4.2%, according to the market research firm UBIST. [ 1 , 2 , 3 ]
- Taxotel (탁소텔) revenue was 27.7 billion won in the third quarter, with 21.3 billion won from global sales and 6.4 billion won from domestic sales. [ 1 , 2 , 3 ]
- Oncology cumulative revenue for the first three quarters was 221.4 billion won, up about 24% from a year earlier. [ 2 , 3 ]
Confirmed by several sources
- Boryung said its cumulative operating profit of 69.4 billion won in the first three quarters exceeded last year's full-year operating profit, even with provisions for the Kanarb drug price lawsuit included. [ 1 , 2 , 3 ]
- Third-quarter revenue rose 12.3% to 314.4 billion won, and operating profit fell 13.4% to 25.5 billion won, which Boryung attributed to new-product marketing and labour costs. [ 1 , 2 , 3 ]
- Revenue growth came from higher Kanarb family prescriptions, the Atozet co-promotion and Taxotel sales at home and abroad. [ 1 , 2 , 3 ]
- Kanarb family prescriptions rose 7.1% in the third quarter, against hypertension market growth of 4.2%, according to UBIST. [ 1 , 2 , 3 ]
- Kanarbjet (카나브젯), launched in June, passed 1 billion won in monthly outpatient prescriptions in September. [ 1 , 2 , 3 ]
Still unclear
- How large the provision for the Kanarb drug price lawsuit is. The documents mention the provision but give no amount or details of the lawsuit.
- Whether Atozet co-promotion revenue will keep growing and whether oncology profitability will keep improving. These are company forecasts reported mainly by one outlet (2); the documents give no independent assessment.