Chong Kun Dang Achieves Double-Digit Growth in Both Sales and Operating Profit Last Year

Balanced Growth of New and Existing Products

[Asia Economy Reporter Lee Myunghwan] Chong Kun Dang recorded double-digit growth in both sales and operating profit last year. Steady growth is expected this year as well, driven by the effects of core products, new products, and market expansion.

According to Chong Kun Dang on the 6th, consolidated sales and operating profit for 2022 reached 1.4883 trillion KRW and 109.9 billion KRW, respectively. Compared to the previous year, sales increased by 10.8% and operating profit by 16%. Net profit for the period grew by 88.8% year-on-year to 79.9 billion KRW.

A representative from Chong Kun Dang stated, "Both new and existing products showed balanced growth," adding, "Among new products, the COVID-19 diagnostic kits co-marketed with Humasis performed well, and among existing items, the brain function enhancer ‘Gliatilin’ and osteoarthritis treatment ‘Emoten’ achieved good results." The osteoporosis drug ‘Prolia’ from Amgen, co-marketed by Chong Kun Dang, and the gastroesophageal reflux disease drug ‘K-CAB’ from HK Innoen also posted strong performances.

Chong Kun Dang expects to maintain its strong performance this year. In addition to the favorable trend of existing pharmaceuticals, the launch effect of new drugs such as ‘G-Tech’ is anticipated. KB Securities analyst Kim Taehee analyzed, "Steady growth is expected as the strong performance of existing chronic disease drugs is complemented by new product effects," adding, "Attention should be paid to the recently launched biosimilar of Lucentis, ‘Lucenbess,’ and the natural product new drug for gastritis, G-Tech, which is currently under price negotiation."

Chong Kun Dang is also expanding its market channels. On the 3rd, Chong Kun Dang signed a technology licensing agreement for the ADC platform with Synaffix, a Dutch antibody-drug conjugate (ADC) specialist company. ADC technology involves linking highly effective chemical drugs to antibodies that bind only to specific antigens, enabling the drug to selectively target cancer cells expressing the antigen.

The company has also entered the electronic medicine distribution sector. On the 30th of last month, Chong Kun Dang signed a domestic joint promotion contract for the depression electronic medicine ‘Mindsteem’ with Ybrain, an electronic medicine platform company. Accordingly, Chong Kun Dang will receive exclusive supply of Mindsteem from Ybrain and conduct sales targeting psychiatric clinics in Korea.