MediPost Reports Q2 Revenue of 14.8 Billion KRW, Up 6.7% Year-on-Year

Operating loss increased to 3.08 billion KRW
Increase in cost of sales and R&D expenses, impact of OmniaBio acquisition

Exterior view of Medipost headquarters.

[Asia Economy Reporter Lee Gwanju] Medipost announced on the 5th that its sales in the second quarter of this year reached 14.8 billion KRW, a 6.7% increase compared to the same period last year. The sales for the first half of the year reached 30.2 billion KRW, a 12.3% increase from the same period last year, achieving the highest half-year sales ever.

However, operating losses increased to 3.08 billion KRW due to rising cost of sales and research and development expenses caused by inflation in the second quarter, as well as the acquisition of shares in OmniaBio, a contract development and manufacturing organization (CDMO) company for cell and gene therapy products. Additionally, pre-tax profit and net income both turned negative due to valuation losses on convertible preferred shares, which did not involve cash outflows, and increased equity method valuation losses of subsidiaries.

Looking at the performance by business division, the cord blood division operating 'Celtree,' the number one domestic cord blood bank in market share, achieved a 12.4% sales growth compared to the same period last year due to an increase in storage contracts. The Cartistem division, which develops stem cell treatments for knee osteoarthritis, also showed a slight growth of 2.3% compared to the same period last year. The health functional food brand Mobita increased sales by 4.4% year-on-year, driven by active marketing efforts such as diversifying online sales channels and increased sales of women-only products.

A Medipost official stated, “Despite the increase in sales, losses have increased due to rising costs caused by inflation and one-time expenses,” adding, “We plan to strengthen future business competitiveness for sustainable growth by advancing overseas clinical trials of Cartistem and the injectable osteoarthritis treatment SMUP-IA-01, as well as diversifying the CDMO business for cell and gene therapies.”