SK biopharma narrows losses in Q3, but SKC’s OP falls 70%

[Provided by Maekyung Media Group]

SK biopharmaceuticals significantly reduced losses in the third quarter thanks to brisk sales of its new epilepsy drug in the United States but its chemicals producing sibling company SKC reported a near 70-percent plunge in income due to an increase in production facility expansion costs despite subdued demand from China.

SK biopharmaceuticals disclosed Thursday its operating loss on a consolidated basis narrowed to 9.2 billion won ($6.8 million) in the third quarter ended September from 40.1 billion won in the previous quarter and 49.9 billion won recorded a year ago. Sales amounted 88.8 billion won, jumping 66.25 percent on quarter and nearly tripled versus a year ago.

On Friday, its shares rose 3.6 percent to trade at 68,300 won apiece, as of 10:19 a.m. in Seoul.

Cenobamate [Provided by SK biopharmaceuticals]

The earnings improvement was largely driven by brisk sales of Cenobamate, its new epilepsy drug that has made successful entry in Europe and other new global markets while sustaining its solid growth streak in the United States, explained an SK biopharmaceuticals official.

Cenobamate generated sales of 47.4 billion won in the U.S. market in the third quarter, up a whopping 138 percent on year. Its cumulative sales in the U.S. through September amount to 119.4 billion won.

SK biopharmaceuticals expects it can meet this year’s sales target of 185.0 billion. In addition to Cenobamate, the company boasts a strong drug development pipeline, which includes “SKL24741” for epilepsy, “SKL20540” for schizophrenia and “SKL27969” for advanced solid tumors.

Its chemicals producing affiliate, SKC, however, closed the third quarter with feeble earnings.

SKC [Provided by Maekyung Media Group]

SKC reported Thursday that its third-quarter operating income plummeted 64.7 percent on quarter and 69.5 percent on year to 36.1 billion won, although sales rose 10.5 percent on quarter and 42.9 percent on year to 835.0 billion won.

The company blamed the poor performance to the increased in expenses to ramp up chemicals production despite subdued demand from China due to the repeated Covid-19 lockdowns.

Income from chemicals business plunged 86.7 percent on year to 12.5 billion won, although sales grew 49.3 percent to 427.5 billion won.

The semiconductor materials generated 7.1 billion won in operating income, down 6.6 percent on year. Sales grew 55.3 percent to 186.5 billion won.

Its secondary battery materials business, however, delivered a 32.2 billion won in operating income over sales of 215.0 billion won, up 36.4 percent and 22.6 percent, respectively, from a year ago. The company said sales network in Europe improved and its new plant in Korea began production.

On Friday, SKC shares are trading 2.8 percent higher at 109,000 won in the morning.