Hanmi Pharm Reports 1.2061 Trillion KRW in Sales Last Year with 160% Increase in Operating Profit

'Earnings Surprise' Amid COVID-19 Pandemic: Net Profit Up 369%
Strong Performance with New Technology Exports and Beijing Hanmi Growth
Invested 160.4 Billion KRW in R&D... Established Virtuous Cycle
4 Consecutive Years as No.1 in Out-of-Hospital Prescription Sales... 18 Blockbuster Products

Exterior view of Hanmi Pharm. [Photo by Hanmi Pharm]

[Asia Economy Reporter Lee Gwan-ju] Hanmi Pharmaceutical recorded an 'earnings surprise' that exceeded expectations despite the COVID-19 situation.

Hanmi Pharmaceutical announced on the 27th that it achieved consolidated sales of 1.2061 trillion KRW, operating profit of 127.4 billion KRW, and net profit of 81.1 billion KRW last year. Sales increased by 12.1%, operating profit by 160.1%, and net profit by 368.9% compared to the previous year.

Hanmi Pharmaceutical explained that these strong results were driven by ▲ continuous growth of self-developed improved and combination new drugs ▲ high growth of its local Chinese subsidiary Beijing Hanmi Pharmaceutical ▲ and a new technology licensing agreement signed with Aptose in November last year.

In particular, Hanmi Pharmaceutical invested 160.4 billion KRW, equivalent to 13.3% of total sales, in research and development (R&D), boosting the momentum of sustainable innovation management. In addition to the newly signed technology export achievements, two innovative new drugs for rare diseases (LAPS Glucagon Analog, LAPS GLP-2 Analog) received approval for Phase 2 clinical trials, and the U.S. FDA designated LAPS GLP-2 Analog as a fast-track development drug.

Rollontis, expected to receive FDA approval this year, was approved domestically in March last year and launched in the Korean market. The anticancer innovative new drug 'Poziotinib' completed its FDA approval application at the end of last year, and FDA marketing approval is also expected this year.

The continuous growth of major improved and combination new drugs independently developed by Hanmi Pharmaceutical in the domestic market is also noteworthy. The Amozalatan family recorded prescription sales of 125.4 billion KRW, Rosuzet 123.2 billion KRW, and Esomezol 53.8 billion KRW, respectively. There are a total of 18 blockbuster drugs with sales exceeding 10 billion KRW (based on UBIST), demonstrating balanced growth in the product portfolio. Based on these results, Hanmi Pharmaceutical achieved first place in domestic outpatient prescription market sales for four consecutive years.

Beijing Hanmi Pharmaceutical, the local Chinese subsidiary, also made a significant contribution to Hanmi Pharmaceutical’s strong performance by achieving sales of 288.7 billion KRW, operating profit of 66.9 billion KRW, and net profit of 60.3 billion KRW last year. Beijing Hanmi Pharmaceutical’s sales grew by 41.9%, and operating profit and net profit increased by 185.9% and 163.3%, respectively, compared to the previous year.

To streamline the production of syrup products, whose sales are rapidly increasing across China, Beijing Hanmi Pharmaceutical recently expanded its syrup production line to become the largest in China. This facility, capable of producing up to 225 million bottles annually, received GMP certification from the Chinese government in July. Additionally, a large-scale smart automated logistics warehouse with a total area of 6,947㎡ (5,147㎡ above ground and 1,800㎡ underground) and nine floors was completed to ensure smooth distribution and production management within China, preparing for a full-scale leap forward.

Woo Jong-su, CEO of Hanmi Pharmaceutical, said, "Despite the global downturn caused by COVID-19, Hanmi Pharmaceutical achieved strong results last year based on its differentiated competitiveness. We will further solidify the virtuous cycle model of reinvesting profits gained from self-developed products into R&D and take the lead in realizing a pharmaceutical powerhouse through the development of global innovative new drugs."

Meanwhile, Hanmi Science, the holding company of Hanmi Pharmaceutical Group, recorded consolidated sales of 953.6 billion KRW, operating profit of 59.5 billion KRW, and net profit of 44.2 billion KRW last year. This is attributed to the strong performance of subsidiaries such as JVM, Online Pharm, and Hanmi Pharmaceutical. Hanmi Science is focusing on securing new future value for the group through various open innovation strategies.