Yuhan Corporation Posts Q3 Operating Profit of 24.1 Billion Won... Down 56% Due to Absence of Milestone Payments

Sales Down 5.8% Year-on-Year to 551.1 Billion Won

Yuhan Corporation posted a significantly lower operating profit in the third quarter of this year compared to the same period last year. This temporary decline in operating profit appears to be due to the absence of one-off milestone payments (technology fees) that were reflected last year and in the previous quarter.

Seoul Songpa-gu Yuhan Corporation Headquarters. Yuhan Corporation

According to a provisional earnings report released on November 5, Yuhan Corporation's operating profit for the third quarter of this year fell by 55.7% year-on-year to 24.102 billion won. During the same period, sales reached 551.126 billion won and net profit was 18.135 billion won, representing decreases of 5.8% and 23.6%, respectively.

On a cumulative basis for the first three quarters of this year, the company recorded sales of 1.6406 trillion won, operating profit of 78.3 billion won, and net profit of 75.2 billion won.

The underperformance is attributed to a negative base effect caused by the absence of milestone payments from Johnson & Johnson (J&J), the partner company for Yuhan Corporation's new lung cancer drug, Leclaza (ingredient: lazertinib). Previously, Yuhan Corporation received approximately 80 billion won in milestone payments in the third quarter of last year and about 20.7 billion won in the second quarter of this year. In contrast, there were no such one-off milestone payments in the third quarter.

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