[Asia Economy Reporter Hyungsoo Park] Aminologics is showing strong performance. The news that its earnings are improving thanks to increased sales of non-natural amino acids appears to be influencing its stock price.
As of 12:15 PM on the 9th, Aminologics is trading at 2,745 KRW, up 8.5% from the previous day.
Aminologics recorded sales of 8.2 billion KRW, operating profit of 2.8 billion KRW, and net profit of 3.2 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 85.2%, operating profit by 579.7%, and net profit by 271.1%.
By business segment, the active pharmaceutical ingredients (API) division recorded 3.924 billion KRW, and the non-natural amino acids division recorded 4.236 billion KRW. The sales proportions were 48.1% and 51.9%, respectively, with the non-natural amino acids segment growing larger. This reversed from last year's proportions of 62.6% and 37.4%.
Aminologics started its amino acid business in 2009. After establishing a research institute in the second half of 2009, it pursued research and development, manufacturing, and sales of amino acids and amine compounds. To manufacture and sell amino acids, it began outsourcing production to external facilities such as Samo Pharmaceutical's Osong plant starting January 2017. Since then, through R&D, it has developed dozens of types of non-natural amino acids and D-amino acid derivatives. As applied materials using amino acids, it has developed and successfully commercialized protected amino acids, amino esters, and oligopeptides. Recently, it has been recognized for the quality of products supplied to global customers and has received requests from these customers to develop new products, which it develops, produces, and supplies in a timely manner. It is building a business model where suppliers and customers grow together.
Amino acids are the basic building blocks of proteins that make up living organisms. They are important materials related to various industries such as food, feed, supplements, cosmetics, pharmaceuticals, and pesticides. More than 100 amino acids exist naturally, but about 20 amino acids are commonly found in organisms ranging from protozoa to plants and animals.
Non-natural amino acids, which are used as high value-added pharmaceutical and cosmetic raw materials and whose demand is rapidly increasing, differ from natural L-type amino acids in that they cannot be obtained naturally and their production methods are complicated. They are mass-produced only by a few companies in some advanced countries. Non-natural amino acids are amino acids not found in proteins and are mainly chemically synthesized artificially or exist in some biological systems.
Optically pure non-natural amino acids are important materials widely used as starting materials or intermediates for synthesizing various pharmaceuticals and bioactive substances. Various non-natural amino acids and their derivatives are used in new drug development and research. Optically pure non-natural amino acids require advanced chiral technology and have high manufacturing costs. Their prices are formed at levels 5 to 100 times higher than naturally fermented amino acids.
Domestically, some pharmaceutical companies use non-natural amino acids as pharmaceutical raw materials. Currently, due to a lack of accumulated competitive technology and related know-how, there are almost no companies in Korea producing non-natural amino acids used in new drug development and research. The market is monopolized by a few global companies such as Japan's Kyowa Hakko and Germany's Evonik Degussa.
Considering the continuous growth of the global pharmaceutical bio industry, non-natural amino acids and their derivatives are very important raw materials. If the supply of amino acids, which has been limited due to manufacturing method constraints, becomes smooth, it is expected that the available pool of chiral compounds will greatly expand, opening a new chapter in the development of pharmaceutical bio industries such as peptide new drug development for treating intractable diseases.
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