Dong-A ST Reports Q1 Operating Profit of 6.7 Billion KRW, Down 15.3% Year-on-Year

Dong-A ST announced on the 27th that its operating profit for the first quarter of this year was preliminarily estimated at 6.682 billion KRW, a 15.3% decrease compared to the same period last year.

Donga ST Biotech Research Institute. [Photo by Donga ST]

During the same period, sales decreased by 12% to 135.127 billion KRW. Net profit for the period increased by 462.6% to 10.557 billion KRW compared to the same period last year.

A Dong-A ST representative explained, "Although the ethical drugs (ETC) division grew, the overseas business division declined compared to the same period last year. Sales decreased due to the transfer of Dong-A Chammed in the diagnostics division, and operating profit declined due to increased research and development (R&D) expenses."

Specifically, in the ethical drugs division, sales of the diabetes new drug 'Suganon' decreased due to distribution volume control, but sales increased by 7.2% year-on-year thanks to the growth of the growth hormone 'Grotropin.' The overseas business division saw increased sales of products such as Dabepeotin Alpha (Japan), but sales of canned Bacchus in the Cambodian market declined due to the global economic downturn, resulting in a 35.8% decrease compared to the same period last year.

Regarding operating profit, although the cost of goods sold and selling and administrative expenses decreased in the first quarter, operating profit declined due to a 16.5% increase in R&D expenses. Dong-A ST's R&D expenses for the first quarter of this year reached 20.3 billion KRW. Net profit increased by 462.6% year-on-year due to the base effect from the previous year and the occurrence of financial income.

In R&D, the biosimilar 'DMB-3115' of the autoimmune treatment 'Stelara' completed global Phase 3 clinical trials in a total of nine countries in the US and Europe last November. DMB-3115 demonstrated therapeutic equivalence to Stelara in January and is preparing for the US Biologics License Application (BLA) and European Marketing Authorization Application (MAA) within the first half of the year.

Through Neurobo Pharmaceuticals, which was incorporated as a subsidiary last December, the global Phase 2 clinical trial application (IND) for the diabetes and non-alcoholic steatohepatitis treatment 'DA-1241' has been completed. The obesity and non-alcoholic steatohepatitis treatment 'DA-1726' is planning a global Phase 1 clinical trial, and the overactive bladder treatment 'DA-8010' is undergoing a domestic Phase 3 clinical trial.

A Dong-A ST representative stated, "We plan to develop new drugs targeting cancer, immune, and degenerative brain diseases in the mid to long term."