Dong-A ST Reports Q1 Operating Profit of 900 Million KRW, Down 98.4% Year-on-Year

"High Base Effect in ETC Sector and Impact of Contract Termination for Some Medical Device Items in Q4 Last Year"

Donga ST Headquarters Building (Photo by Donga ST)

[Asia Economy Reporter Kim Ji-hee] Dong-A ST recorded significantly decreased performance in the first quarter of this year compared to the same period last year.

Dong-A ST announced on the 28th that its operating profit for the first quarter was preliminarily estimated at 900 million KRW, down 98.4% from the same period last year. Sales during the same period decreased by 30% to 140.9 billion KRW. Net profit also fell 98.4% to 700 million KRW.

Dong-A ST explained, "The decline was due to the high base effect in the ethical drugs (ETC) sector and the termination of contracts for some medical device items in the fourth quarter of last year," adding, "Each business division grew evenly compared to the previous quarter, and gradual recovery is expected from the second quarter."

The ETC sector recorded 85.4 billion KRW, down 37.8% year-on-year, due to a high base effect caused by the advance supply of additional product quantities following the suspension of sales operations in the first quarter of last year. Compared to the previous quarter, the main products Styren, Motilitone, Suganon, Grotropin, Gaster, and Jublia steadily grew, increasing by 12.1%.

The overseas export sector was recorded at 36.4 billion KRW, down 4.9% year-on-year. Compared to the fourth quarter of last year, it increased by 21.2%. Sales growth of Can Bacchus (Cambodia), tuberculosis treatments Croserin and Clofazimine (WHO), and Dabepeotin Alpha BS (Japan) contributed significantly. The medical device and diagnostics sector recorded 14.4 billion KRW, down 27.1% year-on-year, due to the termination of contracts for some medical device items in the fourth quarter of last year.

A Dong-A ST official stated, "To expand the scale of overseas exports and the medical device and diagnostics sectors, we have assigned presidents who are experts in these businesses," adding, "We are currently exploring various businesses by establishing a global new business development office and introducing PCL’s self-diagnostic kits."

Operating profit and net profit decreased year-on-year due to the decline in ETC sector sales, as well as increased research and development (R&D) costs and selling and administrative expenses for clinical progress. Dong-A ST plans to focus on the global development of the biosimilar 'DMB-3115' of the psoriasis treatment Stelara this year. Currently, the results of Phase 1 clinical trials are being analyzed in Europe, and IND applications for Phase 3 clinical trials have been completed in nine countries. In the United States, patient recruitment for Phase 3 clinical trials has begun. The diabetes treatment DA-1241 has completed Phase 1b clinical trials in the U.S., and results are planned to be announced at the American Diabetes Association conference in June.

This content was produced with the assistance of AI translation services.