ChabioTech Records Highest Ever Sales of 667 Billion KRW Last Year

[Asia Economy Reporter Hwang Yoon-joo] Cha Biotech has recorded its highest sales ever since its establishment.

Cha Biotech announced on the 25th that its consolidated sales last year reached 667 billion KRW, a 25% increase compared to the previous year. Operating loss was 1.6 billion KRW, and net loss was 37.5 billion KRW, both turning into deficits.

Cha Biotech explained that strong sales from overseas medical networks in the US, Australia, and other countries led to the good performance. The operating loss was attributed to increased patient protection costs at US hospitals due to COVID-19, and increased expenses from accelerated research and development (R&D) at Cha Biotech’s clinical division, Cha Vaccine Institute, and Cha Biolab. Costs were also incurred from establishing and operating the US subsidiary Matica Bio to promote the global contract development and manufacturing organization (CDMO) business.

On a separate basis, operating profit was 270 million KRW, returning to profitability for the first time in seven years since 2013. Sales amounted to 26.8 billion KRW, down 11.7% from the previous year, and net loss was 7 billion KRW. Profitability was achieved through increased profitability of existing businesses, expansion of new businesses, and cost reduction.