Naivec's First Half Sales Increase 42% Year-on-Year... "Strong Overseas Sales of Key Products"

Peptide fusion bio-specialized company Nivec announced on the 13th through a public disclosure that its sales in the first half of this year reached 12.38926 billion KRW, an increase of 42.63% compared to the same period last year. Operating profit during the same period reached 613.38 million KRW, up 97.55% year-on-year. However, due to convertible bond (CB) valuation losses, a net loss of 672.71 million KRW was recorded.

On a quarterly basis, Nivec also achieved sales of 5.96189 billion KRW in the second quarter of this year, up 44.25% compared to the same period last year. Operating profit for the second quarter increased by about 6.21% to 297.19 million KRW, but the net income item recorded a net loss of 900 million KRW due to CB valuation losses. The valuation loss is a loss according to accounting regulations and does not involve actual cash outflow.

The growth in first-half performance was due to increased sales of core bone regeneration bio-material products such as ‘OCS-B’ and ‘OCS-B Collagen’ in the main market, Europe. In addition, the company explained that increased sales in various countries such as the United States and China also contributed to the improvement in quarterly performance.

Nivec expects the performance growth trend to continue in the second half of the year. Additional sales growth is anticipated with the expected acquisition of the European Union (EU) Medical Device Regulation (MDR) certification for major products within the year, and the expansion of overseas approvals for various products including the new peptide tissue regeneration inducer ‘Pepticolizigraft’.

A Nivec representative said, “We are generating stable cash flow through partnerships with global top-tier implant companies in the core business area of bone regeneration bio-materials,” adding, “We will accelerate performance growth by expanding product sales not only in existing major export countries such as Europe, the United States, and China but also in new markets such as Japan, Brazil, and Russia.”

He continued, “Based on the stable growth of cash cow businesses such as bone regeneration bio-materials and peptide active pharmaceutical ingredient contract development and manufacturing organization (CDMO) businesses, results are becoming visible in the new drug development sector as well,” adding, “Notably, ‘NP-201’ is undergoing global clinical trials as a treatment for inflammatory bowel disease and pulmonary fibrosis, and its application is expanding to obesity treatment by utilizing the mechanism of inhibiting adipocyte differentiation.”

Among the major pipelines Nivec is developing, including ‘NP-201’, are ‘NIPEP-TPP-BBB’ and ‘NIPEP-TPP-K-RAS’. ‘NIPEP-TPP-BBB’ is a blood-brain barrier (BBB) permeable delivery system developed in-house by Nivec, currently under development for dementia treatment. ‘NIPEP-TPP-K-RAS’ is an anticancer drug targeting the cancer-causing mutant ‘K-RAS’ gene.