Daewoong Pharmaceutical achieved strong results in the third quarter of this year, driven by growth in its botulinum toxin 'Nabota' and digital healthcare. Profitability also improved as the revenue share of high-margin products expanded.
Daewoong Pharmaceutical said Wednesday that its Q3 standalone operating profit was provisionally recorded at 76.8 billion won. This represents a 43.5% increase year-on-year. Over the same period, revenue rose 17.1% to 415.8 billion won, and net income increased 9.9% to 47.3 billion won. The operating profit margin stood at 18.5%, up 3.4 percentage points from the same period last year.
On a cumulative basis for the first three quarters, revenue increased 11.3% to 1 trillion 151.7 billion won, and operating profit rose 14.8% to 181.4 billion won. Net income grew 25.3% to 151.9 billion won.
A Daewoong Pharmaceutical official stated, "The Q3 results were primarily driven by the expansion of Nabota's global exports, combined with growth in key businesses such as over-the-counter (OTC) drugs and digital healthcare." The official added, "In particular, the expanding revenue share of high-margin products centered on Nabota positively contributed to overall profitability improvements."
Nabota's Q3 revenue reached 116.3 billion won, setting a new quarterly record. Of this, exports surged 127.9% year-on-year to 106.8 billion won. This was influenced by factors such as U.S. distributor Evolus concentrating shipments of U.S.-bound inventory through the third quarter ahead of the September tariff implementation.
A company official said, "Nabota's position in the North American market is strengthening. Upon completion of cGMP (Current Good Manufacturing Practice) certification for the new plant in 2027, a foundation will be secured to expand commercial production volumes."
The digital healthcare division also drove performance growth, with Q3 revenue increasing 40% year-on-year to 17.9 billion won. Revenue from the OTC drug division, which accounted for 13% of total sales, also rose 21% year-on-year, driven by increased sales of Urokinase and health functional foods.
However, revenue for the new gastroesophageal reflux disease drug 'Pexcluu' decreased slightly due to the end of joint marketing with Chong Kun Dang.
A Daewoong Pharmaceutical official said, "Pexcluu's revenue temporarily declined during the transition to direct sales," adding, "We plan to complete the transition to direct sales for all dosages within the year." The securities industry estimated that Pexcluu's Q3 revenue was approximately 3 billion won.
Pexcluu's revenue is expected to recover starting next year. Lee Dal-mi, a research analyst at Sangsangin Securities, said, "With the transition of Pexcluu to direct sales, full-scale marketing activities are expected to begin from Q1 next year, leading to increased revenue."
She added, "Due to the temporary increase in Nabota's Q3 performance, orders are expected to decrease in Q4, resulting in an order gap until Q1 next year. However, Pexcluu is projected to partially offset the revenue decline caused by the Nabota order gap."
She continued, "A recovery in Pexcluu's revenue and a rebound in Nabota's sales are expected in the first half of next year." She added, "As Evolus' sales, previously limited to the U.S., expand to other countries such as Europe and Canada, the order gap period may be shorter than anticipated."
Anothre company official said, "We plan to secure a foundation for continuous growth by strengthening the market competitiveness of our existing core products while expanding global operations and nurturing new growth businesses."
The official added, "We will continue R&D on key drug candidates and advance clinical development of major candidates to secure medium- to long-term growth drivers."
in THEBIO
