In the midst of the never-ending COVID-19, many domestic pharmaceutical companies grew considerably in size in the third quarter. It was found that the total sales of the industry increased by more than 10% compared to the previous year due to the increase in sales of major domestic companies.
Apart from the growth rate, the size of the company has grown, but even in the meantime, signs of change in top companies and the strength of certain pharmaceutical companies thanks to the flu medicine crisis are likely to remain issues this quarter.
Hit News compared the changes in sales, operating profit, and net profit of 74 ‘pharmaceutical manufacturers’, which posted a third quarter report on the Electronic Disclosure System (DART) of the Financial Supervisory Service on the 15th, and found this trend.
The total sales of the 74 pharmaceutical companies surveyed were 6.514 trillion won, an increase of 569.7 billion won or more than 10%p from 5.4816 trillion won in the same period last year.
In the fierce ‘Top 10 competition’
Within the top 30, Daewon, ST Pharm, Anguk, etc. Cinderella
In terms of sales, GC Green Cross ranked first in the industry, posting 459.6 billion won in sales in the third quarter of this year. Second place was Yuhan Corporation with 431.5 billion won. There are only two companies in the domestic pharmaceutical industry that raise 400 billion won per quarter.
Between the solid 1st and 2nd places, there is a movement of ranking competition in the top 10. Chong Kun Dang maintained its third place with 383.8 billion won, surpassing Kwangdong Pharmaceutical’s 377.6 billion won. After that, Hanmi Pharm and Daewoong Pharmaceutical recorded 300 billion won in quarterly sales with 342.1 billion won and 331.8 billion won, respectively.
An interesting point was the competition around the top 10. While Jeil Pharm, which ranked 8th in sales in the third quarter of last year, stagnated, Boryung rose to 8th with sales of 197.9 billion won. In 10th place, JW Pharmaceutical, which rose one notch, recorded 169.8 billion won, and Ildong Pharmaceutical recorded 163.6 billion won in 11th place. On the other hand, Donga ST and Dongkuk Pharmaceutical posted sales of 161.6 billion won and 159.6 billion won, respectively, and placed 12th and 13th.
Below the 30th place, Daewon Pharm, ST Pharm, Angook Pharm, Daehan New Pharm, and Donggu Bio Pharm performed well. Daewon Pharm, which was called ‘Cinderella’ in Corona 19, enjoying special cold medicines such as ‘Col Daewon’ along with a lineup focused on pharmaceuticals, recorded sales of 122.2 billion won in the third quarter, pushing Ilyang Pharmaceutical down a notch in 17th place.
ST Pharm, which ranked 22nd, moved up five places from 27th last year with quarterly sales exceeding 50 billion won. Anguk Pharm, which has many respiratory products, including ‘Sinetura’, jumped eight places with 53.3 billion won. Daehan New Pharm and Donggu Bio Pharmaceutical also posted sales of 51.7 billion won and 50.6 billion won, respectively, and climbed the rankings by four places, respectively.
Outside of the top 30, Pharmgen Science rose three places to 43rd with sales of 36.3 billion won, and Sam-A Pharmaceutical, which has many items for respiratory and pediatric diseases, rose ten places to 56th.
But the rankings weren’t all about joy. Bukwang Pharm, which showed off its presence with ‘Tacenol’, fell three places from last year to 29th, Daehan Pharm, 32nd with 48.6 billion won, and Kyungdong Pharm, 33rd, down nine places with 47.4 billion won.
Samcheondang Pharm, Riyeon Pharm, Myungmoon Pharm, Kukje Pharm, CMG Pharm, Korea Pharma, and Kyungnam Pharm also accepted rather disappointing results compared to last year.
I made a save, but the profitability was different
An overall upward trend was also observed in terms of profitability. The total operating profit of the 74 companies surveyed was 405.5 billion won, up 29.6 billion won, or 7.9 percent, from 375.9 billion won in the same period last year.
Net profit also increased by 47.1 billion won from 302.4 billion won in the third quarter of 2021 to 349.5 billion won, an increase of about 15.6% from last year.
In terms of operating profit, Green Cross took first place with 48.7 billion won, as previously reported in the provisional disclosure. Hanmi Pharmaceutical came in second with 36.8 billion won. In the case of Hanmi Pharm, the fact that it has a high percentage of products developed and sold in-house is an advantage in terms of profitability.
Chong Kun Dang was also successful in operating profit. It ranked third with 36.1 billion won. Daewoong Pharmaceutical’s operating profit of 30 billion won was only 30 billion won.
After that, HK Innoen recorded 22.2 billion won, Boryeong recorded 16.6 billion won, and Pharma Research did well with 16.5 billion won. After that, Dong-A ST, Daewon Pharm, Celltrion Pharm, Ilyang Pharm, Korea United Pharm, Dongkuk Pharm, and JW Pharmaceutical were placed in the 10 billion won range.
On the other hand, Ildong Pharmaceutical, which has a lot of R&D investment in new drug development, increased its operating loss to 18.6 billion won from 14.9 billion won the previous year, while Shinpoong Pharmaceutical recorded a higher loss at 14.1 billion won than the previous year’s 5.7 billion won. In addition, I-Cure, Yuhan Corporation, Jeil Pharm, Samsung Pharm, Korea Union Pharm, Yungjin Pharm, Bukwang Pharm, and Aprogen Pharm also showed operating losses.
The largest increase in operating profit was Samcheondang Pharmaceutical. Samcheondang Pharmaceutical recorded an operating profit of 3.7 billion won this year, making up for an operating loss of 8.9 billion won last year. Behind them, Hanmi Pharm recorded 9.9 billion won, Daewon Pharm 8 billion won, Gyeongnam Pharm 7.5 billion won, Daewoong Pharm 7.3 billion won, and HK Innoen 5.1 billion won.
GC Green Cross also ranked first in net profit. GC Green Cross posted a net profit of 42.4 billion won in the third quarter, surpassing second-ranked Hanmi Pharmaceutical’s 31.2 billion won by more than 10 billion won.
Chong Kun Dang ranked third with 28.2 billion won, followed by Korea United Pharmaceutical with 23.8 billion won, followed by Boryeong with 21.9 billion won, Donga ST with 21.4 billion won, and Daewoong Pharmaceutical with 21.2 billion won. raised
On the other hand, Ildong Pharmaceutical showed a disappointing performance with a net loss of 16.8 billion won. After that, Shinpoong Pharmaceutical showed a net loss of 9.3 billion won, I-Cure 6.3 billion won, and Hwail Pharm 5.4 billion won.
Didn’t ‘we’? Opponent did just fine
The joys and sorrows of the special Corona 19, the weakening trend of specialized pharmaceutical companies
An interesting point in the 3Q report is that the industry’s performance was not divided into good or bad, but that the ranking change occurred due to relatively ‘bigger’ pharmaceutical companies amid the overall growth trend.
Even in Chong Kun Dang, which ranked third, Kwang Dong Pharm increased its sales by 7.8 percent compared to the previous year, but Chong Kun Dang beat Kwang Dong Pharm by 6 billion won with a 12.2 percent increase. Among the companies ranked in the survey, only four cases, including Jeil Pharm, Samjin Pharm, Kyungdong Pharm, and Optus Pharm (formerly DHP Korea), actually decreased in sales.
Among the reasons for creating such an atmosphere, we can guess what the main items each pharmaceutical company is handling.
Among the companies that rose three or more places in the rankings, companies such as Anguk Pharm, Daehan New Pharm, Donggu Bio Pharm, Samil Pharm, Pharmgen Science, Mothers Pharm, Sam A Pharm, and Il Sung Shin Pharm have a large number of respiratory items, a large number of generics, or generics. They have one thing in common: they are companies that specialize in production and sales.
Starting from the second quarter to the third quarter, in a situation where demand for basic medicines such as painkillers and respiratory diseases such as the so-called ‘twindemic’ with Corona 19 and the flu recently increased, their performance is also likely to be greater than other companies. also means
In addition, it can be assumed that raw material manufacturers such as ST Pharm, Hwail Pharm, and Kyongbo Pharm also naturally welcomed favorable news and increased sales.
This is interesting in that it is somewhat different from the decline in the rankings of companies that ‘focused on one place’, such as so-called ophthalmology-specialized pharmaceutical companies such as Samchundang Pharmaceutical and Optus Pharmaceutical, and psychoactive agents such as Whanin Pharmaceutical.
With the profitability of pharmaceutical companies that have released their report cards just three months ahead of the year, interest is focused on whether companies will be able to smile in various indicators that can be used to infer business performance.
Meanwhile, in this study, the consolidated financial statements were used as the standard, but individual standards were used when consolidated data were not available.