Dong-A ST Reports 13.1 Billion KRW Operating Profit in 3Q, Down 7.7% YoY

"Operating Profit Decline Due to Base Effect Compared to Previous Year"

Dong-A ST announced on the 31st that its standalone operating profit for the third quarter of this year was tentatively estimated at 13.077 billion KRW, a 7.7% decrease compared to the same period last year.

Exterior view of Dong-A ST headquarters. [Photo by Dong-A ST]

During the same period, sales decreased by 5.1% to 150.244 billion KRW, and net profit fell by 46.3% to 11.496 billion KRW.

Regarding the third quarter operating profit, Dong-A ST explained, "Although the cost of sales ratio improved in the ethical drugs (ETC) division and selling and administrative expenses were streamlined, the decrease was due to the base effect from the same period last year." Concerning the cause of the sales decline, the company added, "While the ETC division grew compared to the same period last year, sales decreased due to the transfer of the diagnostic business operations to the affiliate Dong-A Chammed."

The ethical drugs division recorded sales of 108.6 billion KRW, a 10.8% increase compared to the same period last year, led by the growth of the growth hormone product 'Grotropin.' Grotropin posted sales of 98 billion KRW in the third quarter, which is a 58.8% increase compared to the same period last year. The diabetes treatment drug 'Suganon' also recorded sales of 6.8 billion KRW, up 38.8% from the same period last year.

Overseas business sales in the third quarter amounted to 31.1 billion KRW, a 16.8% decrease compared to the same period last year. Compared to the same period last year, the anemia treatment drug 'Darbepoetin Alfa BS' showed a sales growth rate of 225.6%, and the tuberculosis treatments 'Croselin' and 'Clopazimin' showed a 107% sales growth rate, but the decrease in sales of the main product Canbarkas had a significant impact. Sales of Canbarkas exported to Cambodia in the third quarter recorded 13.5 billion KRW, down 49.2% compared to the same period last year.

Dong-A ST continues clinical trials and product approval applications in the research and development (R&D) sector. The Stelarara biosimilar autoimmune treatment 'DMB-3115' completed its marketing authorization application to the European Medicines Agency (EMA) in June and is preparing to apply for approval from the U.S. Food and Drug Administration (FDA) within this year.

The non-alcoholic steatohepatitis (NASH) treatment 'DA-1241' is undergoing global Phase 2 clinical trials through its U.S. subsidiary Neurobo Pharmaceuticals. This compound demonstrated improvements in fatty liver and liver fibrosis in preclinical studies. The obesity treatment 'DA-1726' is preparing to submit an Investigational New Drug (IND) application for global Phase 1 clinical trials. Preclinical results showed that DA-1726 has a weight loss effect and appetite suppression similar to the obesity drug Tirzepatide, as well as a weight control mechanism attributed to increased basal metabolic rate.

The overactive bladder treatment 'DA-8010' is currently in Phase 3 clinical trials in Korea. Dong-A ST explained that it has high bladder selectivity, resulting in fewer side effects and superior efficacy compared to existing antimuscarinic agents.

Dong-A ST plans to develop new drugs targeting cancer, immunity, and degenerative brain diseases in the mid to long term. To this end, it introduced a bispecific antibody mechanism immune-oncology drug candidate from Canap Therapeutics in December last year and is conducting joint research. It is also developing targeted anticancer drug candidates using the protein degradation platform technology 'PROTAC.'

Additionally, the dementia treatment targeting tau protein 'DA-7503' is in preclinical stages, and the immune-oncology drug 'DA-4505' is preparing to submit an IND application for Phase 1 clinical trials.

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