Huons, 3Q Operating Profit Up 638.4% YoY... Driven by Prescription Drugs and Injectables

Q3 Operating Profit 14.95 Billion
Revenue 138.2 Billion...12% Increase
Q4 North America Targeting...2nd Plant Eye Drop Line Full-Scale Operation

Huons achieved strong performance in the third quarter, driven by growth in the prescription drug sector and increased overseas exports of injectable drugs.

Exterior view of Huons Group's new office building in Pangyo.
[Photo by Huons]

Huons announced on the 7th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 14.952 billion KRW, a 638.4% increase compared to the same period last year. During the same period, sales increased by 12.2% to 138.166 billion KRW, and net profit grew by 348.1% to 11.78 billion KRW. The operating profit margin stood at 10.8%.

Huons explained that the strong third-quarter performance was due to "prioritizing profitability and focusing efforts on expanding overseas exports and strengthening internal management."

By segment, growth in the prescription drug (ETC) business division contributed to the strong results. The prescription drug division recorded sales of 66.5 billion KRW, a 26% increase compared to the previous year. Prescription sales across anesthetics, cardiovascular, digestive, and anti-inflammatory painkillers showed steady growth.

Exports of injectable drugs to the U.S. market also drove sales growth. Third-quarter injectable drug exports to the U.S. reached 6.1 billion KRW, a 97% increase compared to the same period last year. Huons produces injectable drugs approved by the U.S. Food and Drug Administration (FDA) under the current Good Manufacturing Practice (cGMP) standards at its factory and exports them to the U.S. In June, it newly obtained approval to export 2% lidocaine topical anesthetics.

The beauty and well-being business division also maintained steady performance with sales of 5 billion KRW. Demand for immune enhancement during seasonal changes led to strong sales of well-being pharmaceuticals. In health functional foods, flagship brands 'Menolacto' and 'Jeonlipseon Sagunja' recorded their highest quarterly sales. The contract manufacturing organization (CMO) business also grew by 14.7% year-on-year, recording sales of 17.1 billion KRW. Huons is currently conducting approval test production ahead of the full-scale operation of the second plant’s eye drop production line and plans to further expand eye drop sales through commercial production.

Operating profit reached 15 billion KRW, with an operating profit margin of 10.8%. The double-digit operating profit margin was achieved due to overseas pharmaceutical exports, growth in the prescription drug business, and strengthened internal management. The subsidiary Huons Foodience recorded sales of 11.7 billion KRW and an operating profit of 200 million KRW in the third quarter.

Huons aims to continue its growth momentum in the fourth quarter. It will focus on targeting the North American market. Through collaboration with its local subsidiary HuonsUSA, it plans to increase the market share of the newly FDA ANDA-approved 2% lidocaine anesthetic in the U.S., export 1% lidocaine (vials, ampoules) to Canada, and explore new business opportunities.

Preparation for the full-scale operation of the second plant’s eye drop production line is also underway. With this production line expansion, Huons will increase its production capacity from the existing 350 million units to approximately 520 million units, a 1.5-fold increase. The new expanded line will respond to the growing demand for dry eye treatment drugs and continue to target the eye drop market. To accelerate export efforts, expansion of the injectable drug line within the second plant is also in progress.

Huons is also accelerating the development of new drugs for dry eye treatment. In June, it submitted an IND (Investigational New Drug) application for the Phase 1 clinical trial of 'HUC-1 394 (FPR2 Selective peptide ligand),' and is conducting Phase 3 clinical trials for 'HUC2-007,' a combined eye drop that minimizes side effects by combining cyclosporine and trehalose.

Song Soo-young, CEO of Huons, stated, "Despite difficult domestic and international economic conditions, Huons was able to achieve strong third-quarter results based on its global export expansion strategy. We will continue to strive to supply globally quality pharmaceuticals produced by Huons to the world."

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