Naibec, Performance Turnaround... Q3 Sales Up 311% YoY

[Asia Economy Reporter Yoo Hyun-seok] Naivek announced on the 15th through a public disclosure that its consolidated sales for the third quarter of this year reached 4.4 billion KRW, an increase of 311.9% compared to the same period last year. During the same period, operating profit and net profit also recorded 400 million KRW and 300 million KRW respectively, achieving a turnaround to profitability.

The sales growth in the third quarter and the turnaround in operating profit and net income were driven by strong exports of the 'bone regeneration bio-material' to the European region, along with new market entry into China.

Since obtaining the 'European CE certification' for the bone regeneration bio-material in 2012, Naivek has been supplying products mainly to leading global implant companies in the European region. In September, the company also succeeded in entering the Russian market by obtaining sales approval from the Russian government for its main products, the bone regeneration bio-material 'OCS-B' and the collagen composite bio-material 'OCS-B Collagen'.

Since August this year, Naivek has been actively entering the Chinese market, starting with the shipment of initial quantities. The supply volume to China, even as an 'initial shipment,' is the largest ever compared to other countries previously entered. However, since this supply volume only reflects demand from 'some regions' rather than 'all across China,' significant growth potential is expected in the future.

Naivek had already succeeded in obtaining sales approval from the 'China National Medical Products Administration (NMPA)' last year and is pursuing market penetration in the Chinese-speaking regions including China and Taiwan through global implant distribution companies.

A Naivek official stated, "While demand for bone regeneration materials supplied to Europe continues, we achieved third-quarter sales growth and a turnaround to profitability by successfully entering the Chinese market. Once exports to China become full-scale, a significant increase in sales will be possible."

He added, "The bio-material business is Naivek's stable cash cow capable of generating cash flow, and since research and development (R&D) costs are covered independently without external assistance, the capacity for R&D will improve as the bio-material business performance grows. We will continue to steadily pursue various ongoing R&D projects, including not only bio-materials but also antibody and gene (mRNA)-based drug delivery platforms."

Meanwhile, Naivek recently signed a joint new drug development research agreement with global pharmaceutical company Daiichi Sankyo to apply Daiichi Sankyo's candidate substances to Naivek's self-developed NIPEP-TPP-based drug delivery platform. Naivek plans to enter into a joint development or license-out agreement with technology transfer upon successful results from the joint research with Daiichi Sankyo.

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