Korean pharmas report strong Q1 earnings amid doctors’ strike

[Graphics by Song Ji-yoon and Han Yubin]

South Korea’s major pharmaceutical companies posted solid first-quarter results amid the ongoing protest by junior doctors against the government for its plan to admit more medical students.

Hanmi Pharmaceutical Co. announced on Tuesday that its sales stood at 403.7 billion won ($291 million) in the first quarter, up 11.8 percent from the same period a year ago. Its operating profit came to 76.6 billion won, up 27.9 percent during the same period.

The company attributed the gain to robust sales of flagship products, seasonal peaks, and improved sales in Beijing Hanmi Pharmaceutical on the back of increased demand amid the spread of pneumonia and flu in China.

HK inno.N Corp. announced Tuesday that its first-quarter sales reached 212.6 billion won, a 15 percent year-on-year increase, with operating profit soaring by 206 percent to 17.2 billion won.

The sales boost was driven by strong growth across all ethical drugs, particularly the new gastroesophageal reflux disease drug Kcab tab (tegoprazan).

Daewoong Pharmaceutical Co. posted first-quarter sales of 296.6 billion won, up 1.47 percent from a year ago. Its operating profit gained 0.83 percent to 31.2 billion won. Both figures are the highest for any first quarter.

Although the pharmaceutical industry managed to maintain its first-quarter earnings, industry observers anticipate a downturn in the second quarter due to the lingering impact of the doctors’ strike that began earlier this year.