Bukwang Pharmaceutical Reports Q1 Sales of 47.8 Billion Won and Operating Profit of 1.1 Billion Won

Contera Pharma Advances 'CP-012' to Phase 2 Clinical Trials

Bukwang Pharmaceutical announced at an IR event on April 21 that its consolidated sales for the first quarter of this year reached 47.8 billion won, with an operating profit of 1.1 billion won.

Bukwang Pharmaceutical evaluated that it has stabilized its profitability, but explained that the main reason for the decline in operating profit compared to the same period last year was the increase in contract manufacturing to secure capacity in response to product shortages.

Main building of Bukwang Pharmaceutical in Dongjak-gu, Seoul. Bukwang Pharmaceutical

Bukwang Pharmaceutical stated, "We have faced difficulties for several years due to product shortages," adding, "To proactively prevent shortages of our main prescription drug products, we expanded contract manufacturing for certain items, including over-the-counter medicines and toothpaste. The resulting increase in manufacturing costs was reflected in our operating profit."

The company further explained, "To secure production capacity, we are automating our Ansan plant and are in the process of acquiring Union Korea Pharm. After the acquisition is complete, we plan to restructure our production portfolio, which we expect will resolve many of the manufacturing cost issues."

According to Bukwang Pharmaceutical, based on external prescription data, prescription drug sales in the first quarter of this year grew by 8.7% year-on-year, and the Central Nervous System (CNS) Business Division achieved 36% growth.

Additionally, Bukwang Pharmaceutical shared updates regarding the acquisition of Union Korea Pharm and new drug research and development by its subsidiary, Contera Pharma.

Union Korea Pharm, which is in the process of being acquired, received a delisting decision on April 3 and filed for an injunction on April 6. Bukwang Pharmaceutical stated, "The purpose of this acquisition is to secure manufacturing facilities and production capacity, so the acquisition will proceed as planned regardless of the delisting status."

Contera Pharma, the new drug development subsidiary, plans to submit an Investigational New Drug (IND) application for the Phase 2 clinical trial of 'CP-012', a treatment for morning akinesia in Parkinson's disease, to the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) within the first half of the year. Preclinical results for 'CP-102', a candidate treatment for Canavan disease derived from the company's RNA platform, are scheduled to be presented at a conference on April 22.

Jaeyoung Lee, CEO of Bukwang Pharmaceutical, commented, "As previously stated at the shareholders' meeting, we anticipated volatility in operating profit this year due to the costs of the Phase 2 clinical trial for CP-012 and the base effect from last year's Contera Pharma-Lundbeck contract. However, we will continue to maintain a positive profit trend going forward."

He added, "This year will be a period of preparation for future growth, with the acquisition of Union Korea Pharm, the full-scale entry into Phase 2 clinical trials for CP-012, and the expansion of our RNA platform."

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