UPDATE : Monday, September 7, 2020
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Daewoong's Q2 earnings plummet amid legal battle with Medytox
  • By Lee Han-soo
  • Published 2020.07.31 16:58
  • Updated 2020.07.31 17:26
  • comments 0

Daewoong Pharmaceutical suffered a nosediving operating margin in the second quarter of this year amid the ongoing lawsuit against Medytox over the ownership of a BTX strain.

Daewoong Pharmaceutical recorded a fall in its operating margin amid the ongoing lawsuit against Medytox over BTX strain ownership. (Daewoong)

According to the company's earnings report on Friday, Daewoong reported 226 billion won ($189.7 million) in sales in the second quarter, down 14.2 percent from the same period in 2019.

Operating profit and net profit turned into losses during the cited period. The company registered 4.7 billion-won operating loss and 1.2 billion-won net loss, falling 127.7 and 202.4 percent from a year earlier.

"Albis' interim suspension of sales, increased R&D investment, Nabota litigation costs, and declining export of Nabota due to the impact of Corona19 affected profit and loss," the company said. "Despite the provisional suspension of Albis, the company managed to achieve sales of 179.4 billion won for its ethical drug (ETC) division through various product portfolios."

The existing flagship products, Olmetec and Gasmotin, contributed to sales growth, and Diabex's sales increased 33.4 percent compared to a year ago, the company said.

The over-the-counter (OTC) division also achieved 29.6 billion won in sales, a 4.3 percent increase year on year.

"Notably, the flagship product, Impactamin, exceeded 10 billion won in quarterly sales and led the turnover growth of generic drugs," the company said. "Key licensed products, such as Forxiga and Lixiana, also contributed to the company's sales."

A company official said, "The ETC and OTC divisions continued to grow robustly despite difficult business conditions due to the Covid-19 pandemic and the temporary suspension of sales of ranitidine-based pharmaceuticals."

However, the company expects that Nabota's litigation costs, which had a significant negative impact on profit and loss in the first half of this year, will decline during the second half-year, he added.


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