Dong-A ST Reports Operating Profit of 32.5 Billion KRW Last Year, Up 110% YoY

[Asia Economy Reporter Myunghwan Lee] Dong-A ST announced on the 13th that its individual basis operating profit for last year was tentatively estimated at 32.527 billion KRW, a 110% increase compared to the previous year. During the same period, sales increased by 7.7% to 635.84 billion KRW, and net profit rose by 120.1% to 26.345 billion KRW.

Exterior view of Dong-A ST headquarters. / Photo by Dong-A ST

Regarding last year's strong performance, Dong-A ST explained, "Sales increased as all business sectors, including the prescription drug (ETC) division, overseas business division, and medical device & diagnostics division, grew evenly," adding, "Operating profit also increased due to the rise in sales and technology export fees."

Specifically, sales in the prescription drug division increased by 4.5% compared to the previous year. This growth was attributed to key products such as the growth hormone 'Grotropin,' the functional dyspepsia treatment 'Motilitone,' and the antifungal agent 'Jublia.'

The overseas business division grew by 10.0% year-on-year, driven by increased canned Bacchus sales in the Cambodian market following the normalization of COVID-19 last year, entry into the Brazilian tender market for Grotropin, and increased sales of Darbepoetin Alfa in Japan. The medical device & diagnostics division saw a 4.6% increase during the same period due to higher sales of medical device equipment and infection control products in the diagnostics sector.

Operating profit and net income increased by 110% and 120.1%, respectively, as sales and technology export fees rose. This offset the increases in research and development (R&D) expenses and selling and administrative expenses.

In the R&D sector, the autoimmune treatment 'Stelara' biosimilar 'DMB-3115' completed global Phase 3 clinical trials in nine countries, including the United States and Europe, in November last year. Subsequently, last month, therapeutic equivalence to the original drug was demonstrated. Dong-A ST explained that DMB-3115 is currently preparing the Biologics License Application (BLA) in the U.S. and the Marketing Authorization Application (MAA) in Europe.

Additionally, the diabetes and non-alcoholic steatohepatitis treatment 'DA-1241' is preparing for global Phase 2 clinical trials through Neurobo Pharmaceuticals, which was incorporated as a subsidiary in December last year. The obesity and non-alcoholic steatohepatitis treatment 'DA-1727' is planning global Phase 1 clinical trials. Furthermore, the overactive bladder treatment 'DA-8010' is undergoing Phase 3 clinical trials domestically, and the once-weekly patch-type dementia treatment 'DA-5207' is in Phase 1b clinical trials in Korea. The diabetes treatment 'DA-1229 (Sugannon)' is conducting Phase 2 clinical trials domestically through the joint venture RedEnvia, and Phase 2b/3a trials have commenced in the U.S.

Dong-A ST plans to develop new drugs targeting cancer, immune, and degenerative brain diseases in the mid to long term. A Dong-A ST official stated, "In December last year, we introduced a bispecific antibody mechanism immune-oncology candidate from Canaft Therapeutics and are conducting joint research," adding, "We are developing targeted anticancer candidates using the protein degradation platform technology PROTAC, and the dementia treatment 'DA-7503,' targeting tau protein, is also in preclinical stages."