Woongjin Bio Reports 38.8 Billion KRW in Sales Last Year with Continued Operating Losses... "Performance Improvement in 4Q"

Woojung Bio announced on the 16th that its provisional sales last year amounted to 38.81678 billion KRW, with an operating loss of 3.96126 billion KRW. Sales decreased by 17.3% compared to 2022, and the operating loss widened by 57.1%. The company explained that the decline in operating profit was due to "a decrease in sales caused by the stagnation of the bio and pharmaceutical markets" as well as "an increase in sales-related expenses to boost sales after the COVID-19 endemic (periodic outbreak of infectious diseases)."

[Photo by Woojeong Bio]

However, it also emphasized that sales increased and the operating loss narrowed in the fourth quarter. In the fourth quarter alone, sales reached 18.1 billion KRW, accounting for about half of the annual sales, and the operating loss was reduced by approximately 1.3 billion KRW compared to the cumulative loss of 5.2 billion KRW up to the third quarter. A Woojung Bio representative stated, "The contraction of the pharmaceutical and bio markets last year was a global trend," adding, "Since the first half of the year, we have proactively responded by continuously launching new services and conducting investment projects in line with market trends, and cash flow, including depreciation expenses, is also improving."

Woojung Bio is placing its hopes for sales improvement on the growth of its artificial intelligence (AI) drug development business. It explained that about 25% of the member companies of Lab Cloud, Woojung Bio’s incubating and accelerating center, are conducting AI-related research. Since these companies verify their research by using Woojung Bio’s drug analysis center, efficacy evaluation center, vivarium, and other non-clinical clinical trial outsourcing (CRO) services within the Woojung Bio new drug cluster, it is expected to positively contribute to sales.

Cheon Byeong-nyeon, CEO of Woojung Bio, said, "Although overall sales decreased, the results of our efforts began to appear from the fourth quarter, and we can say that we have succeeded in shifting to a growth trend," adding, "We will make this a new year for Woojung Bio to bear fruit from new attempts and transition to profitable management."