BioPharm Completes Facility Expansion, Doubling Production Capacity... "Expecting Growth"

[Asia Economy Reporter Hyunseok Yoo] BioPharm, a specialized manufacturer of health functional foods, announced on the 30th that it has completed the construction of a new factory to expand its production capacity. With this expansion of production facilities, BioPharm's annual production capacity has approximately doubled compared to before. The newly added production line was designed to be compatible with existing equipment to maximize the efficiency of the production process.

BioPharm's sales were only 13.7 billion KRW in 2018, but recorded 21.2 billion KRW in 2019 and 32.5 billion KRW in 2020, maintaining a steep growth trend. The average annual sales growth rate reached 53.9%, and operating profit more than doubled from 2.1 billion KRW in 2018 to 5.7 billion KRW in 2020.

BioPharm has secured various sales channels centered on top domestic pharmaceutical companies and health functional food companies, and can produce most common formulations such as powder, hard capsules, and tablets. Based on this expansion, sales growth is expected to continue. This year, the company has set a sales target of 45 to 50 billion KRW or more. Since sales of about 10 billion KRW were already recorded in the first quarter with the existing production lines alone, the company explains that the likelihood of achieving the target is high.

A BioPharm official said, "There had been limitations in responding to increased supply volumes from clients due to production facility constraints," adding, "With this expansion, production capacity has been reinforced, so we expect it will also help strengthen our sales capabilities."

He continued, "BioPharm is not only expanding production capacity but also strengthening R&D functions to secure technological competitiveness," and said, "To this end, we recently established a company-affiliated research institute specialized in raw material production and recruited research directors and production executives from major health functional food companies."

BioPharm is actively considering entering overseas markets as well as domestic ones. Recently, it has been discussing various plans with related companies to establish an overseas production plant in Europe, making overseas expansion also foreseeable.