SK Biopharm Reports 63 Billion KRW Operating Loss in Q3 Due to Increased Selling and Administrative Expenses

[Asia Economy Reporter Seo So-jung] SK Biopharm (CEO Cho Jung-woo) announced on the 12th that it recorded sales of 3.9 billion KRW and an operating loss of 63 billion KRW in the third quarter of this year based on consolidated financial statements. Sales increased by 4704% compared to the same period last year, but operating profit decreased by 25% due to a larger deficit.

Operating loss expanded as selling and administrative expenses increased by 13% compared to the previous quarter to 66.6 billion KRW, due to the initial payment for the Phase 3 clinical trial of Cenobamate in Asia and other new research expenses.

Sales increased by 89.9% compared to the previous quarter, reflecting the growth of the epilepsy drug 'Cenobamate' and royalties from the sleep disorder drug 'Solriamfetol,' which was licensed out to Jazz Pharmaceuticals.

The average monthly prescriptions of Cenobamate in the third quarter reached 2,260, entering the market at a faster pace compared to the early launch phase of competing drugs (around 1,300 average monthly prescriptions). The insurance listing rate of Cenobamate (as of the end of September) reached approximately 80%.

According to Jazz Pharmaceuticals' earnings report, Solriamfetol achieved sales of 10 billion KRW (9.1 million USD, about 10.2 billion KRW) in the third quarter, following the second quarter. Solriamfetol was first launched in the United States in July last year, and in Europe, sales began in Denmark in October following Germany in May. Solriamfetol is scheduled to be sequentially launched in major European countries such as France and the United Kingdom within 18 months.

An SK Biopharm official stated, "We are continuously investing in research and development (R&D) and focusing on new drug development," adding, "The schizophrenia treatment drug candidate SKL20540 completed Phase 1 clinical trials in Korea last October, and Cenobamate is planned to undergo Phase 3 clinical trials early next year in Japan, China, and Korea to enter the Asian market."