Medipron, Q1 Operating Profit Turns Positive... "Sales Increase by 22%"

[Asia Economy Reporter Hyunseok Yoo] Mediphron, a biopharmaceutical company specializing in new drug development, announced on the 17th that it achieved sales of 10.4 billion KRW and an operating profit of 300 million KRW for the first quarter. Sales increased by 22% compared to the same period last year, and operating profit turned positive at 296 million KRW.

The overall strong performance of the IT distribution business and HMR business drove sales growth and the turnaround to profitability. The company expects this growth trend to continue, forecasting record-high annual sales and operating profit for this year.

Based on this performance outlook, it is anticipated that new drug development will gain further momentum. Although the company achieved significant R&D milestones last year, including IND approval for the non-narcotic analgesic (MDR-652) Phase 1 clinical trial from the Ministry of Food and Drug Safety and product approval for an early dementia diagnosis kit, it had been limited in R&D investment due to operating profit turnaround issues. The company explains that it is now free from these constraints.

In March, Mediphron obtained a domestic patent for a new drug candidate that blocks the formation of beta-amyloid plaques and neurotoxicity, which are major causes of Alzheimer's disease dementia. The topical analgesic 'MDR-652' is scheduled to enter Phase 1 clinical trials in South Korea in the second half of this year. The company plans to expand indications for 'MDR-652' to include diabetic neuropathy, postherpetic neuralgia, and myofascial pain.

A Mediphron official stated, "Unlike in the past when operating profit issues forced us to be passive in R&D in the bio sector, we are now actively investing in R&D, including hiring PhD-level researchers. Alzheimer's disease drug research is progressing smoothly, and at the same time, by securing new possibilities in drug repositioning research for existing drugs, we expect to achieve meaningful results not only operationally but also in new drug development in 2021."