Huons recorded an operating loss of 4.5 billion won in the third quarter of this year, turning to a deficit compared with the same period last year. The company explained that this was due to increased research and development (R&D) investment costs and the recognition of recall costs for products exported to the United States.
On the 12th, Huons disclosed in a preliminary report that its consolidated operating profit for the third quarter of this year turned into a loss of 4.5 billion won, a shift from a profit in the same period last year. During the same period, revenue decreased by 6.3% to 144 billion won, while net income increased by 87.5% to 15.4 billion won.
Based on Huons' standalone financial statements, the company recorded revenue of 118.5 billion won and an operating loss of 3.1 billion won. Huons' standalone revenue decreased by 5.4% year-on-year due to the termination of its continuous glucose monitoring device business and the absence of U.S. exports. However, the new vaccine business launched this year and domestic pharmaceutical sales continued their growth trend.
A Huons official explained, "Operating profit turned into a deficit due to factors such as decreased revenue and increased cost of goods sold." The official added, "As we strengthen R&D investment for future sustainable growth, Q3 R&D expenses increased by 13.9% year-on-year and by 21% quarter-on-quarter, and costs related to the recall of U.S.-exported products were recognized."
Subsidiary Huons N recorded revenue of 21.8 billion won in the third quarter, a 12.5% increase from the same period last year. This was driven by the absorption merger with BioRose in July, an increase in original equipment manufacturing (OEM) sales for health functional foods, and growth in exports.
Considering its preliminary Q3 results and Q4 outlook, Huons filed a corrected disclosure on the 12th adjusting its annual revenue forecast from 646.2 billion won to 584.6 billion won. The company stated it will continue to pursue cost efficiency through tight management while growing its vaccine distribution business, which began in April last month, to boost revenue. It also plans to spare no investment for R&D and manufacturing quality improvement.
Huons is achieving various R&D results, including clinical development, conference presentations this year, and selection for national research projects. In clinical development, the company registered its first patient in Phase 2 clinical trials for 'HUC1-394,' a new drug for dry eye syndrome, in July last month. The goal is to complete the final visit (LPLV) of the last patient in the second half of next year.
Preclinical research results for 'HUC1A-626,' a candidate therapeutic for digestive diseases, were presented as a poster at the European Society of Gastroenterology Week (UEG Week 2026) last month. The company plans to present its obesity treatment candidate at Obesity Week 2026, which opens in the United States on the 14th.
In September last month, three consortiums formed by Huons with Surgenex, Pinobio, and Pulse In Myers, respectively, were selected for a national project on joint new drug development.
Meanwhile, Huons decided on a cash dividend of 200 won per share through its board of directors meeting on the 12th, setting the record date as December 4. The scheduled payment date is December 21. The total dividend amount is 2.3 billion won. Since this is a reduced dividend funded by transferring capital reserves to retained earnings, it does not constitute taxable income.
Song Su-young, CEO of Huons, stated, "Even as difficult domestic and international conditions persist, we are maintaining our dividend policy, which is a promise to our shareholders, without wavering." He added, "We will further enhance shareholder value through revenue recovery and profitability improvement."
in THEBIO
