ST Pharm Reports 165.6 Billion KRW in Sales Last Year... Operating Profit Turns Positive

[Asia Economy Reporter Lee Chun-hee] ST Pharm achieved sales of 165.6 billion KRW last year, marking a 33% growth, and also succeeded in turning a profit in operating income. This growth was driven by a surge in sales of its core business area, the contract development and manufacturing organization (CDMO) for active pharmaceutical ingredients (API).

ST Pharm announced on the 24th that its sales last year reached 165.64195 billion KRW, a 33.5% increase compared to the previous year. Operating profit was 5.57759 billion KRW, and net profit was 4.77763 billion KRW, both turning positive compared to the previous year.

The company analyzed that this growth was due to the oligo API CDMO sales, its main industrial sector, which grew 91.3% from 45.2 billion KRW the previous year to 86.5 billion KRW last year. In particular, the proportion of this high-margin sales expanded to 52.2% of total sales, resulting in a decrease in cost of sales from 83.9% to 65.1%.

Subsidiaries, including European-based clinical research organizations (CROs), also achieved a turnaround to profitability within two years since their acquisition in 2019, with consolidated sales of 27.1 billion KRW and operating profit of 2.5 billion KRW.

Research and development (R&D) expenses, which are investment costs such as the development of messenger ribonucleic acid (mRNA) platform technology, increased by 38.6% from 13.2 billion KRW in 2020 to 18.3 billion KRW last year.

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