Jongkundang has regained its growth momentum, largely thanks to the effectiveness of its weight loss drug, Wegovy. As growth in its existing key products has slowed, Wegovy has quickly established itself as a new core product, helping to stabilize the company's performance. At the same time, Jongkundang is pursuing its own new drug development to secure long-term growth drivers.
According to a report from the Financial Supervisory Service on May 31, Jongkundang recorded standalone sales of 447.8 billion won and an operating profit of 17.6 billion won in the first quarter of this year. These figures represent increases of 12% and 37%, respectively, compared to the same period last year. Of this, Wegovy, which is co-marketed with Novo Nordisk, generated approximately 48.8 billion won in sales during the first quarter, accounting for about 10% of total pharmaceutical sales.
In contrast, sales of existing top products have seen some decline. The osteoporosis treatment Prolia generated about 30 billion won in sales, while the cognitive enhancer Gliatirin recorded 14.8 billion won, reflecting decreases of 33% and 29%, respectively, compared to the previous year.
While Wegovy has become a key contributor to Jongkundang's growth, increasing competition in the weight loss drug market poses a challenge. GC Green Cross Wellbeing reported first-quarter sales of 49.1 billion won, bolstered by the distribution of its weight loss drug, Maunzaro. Additionally, domestic pharmaceutical companies are actively developing their own weight loss treatments, raising concerns about maintaining long-term competitiveness with just introduced products.
An industry insider noted, "Demand for Wegovy is likely to continue for the time being, but as competing products increase, a battle for sales power will be inevitable. Currently, Wegovy's impact is primarily defensive for performance."
Jongkundang is channeling its secured revenue into research and development (R&D) investments to improve its operational structure. In October of last year, it established a subsidiary, Achella, to enhance its capabilities in new drug development.
Through Achella, Jongkundang is currently developing the dyslipidemia treatment CKD-508, the oral GLP-1 agonist CKD-514, and the histone deacetylase 6 (HDAC6) inhibitor CKD-513. Among these, CKD-514 aims to enter Phase 1 clinical trials in the second half of this year. Non-clinical results presented at last year's American Obesity Society meeting indicated that CKD-514 showed significant weight loss effects and superior oral bioavailability compared to Eli Lilly's Orforglipron, even at lower doses.
A Jongkundang representative stated, "We are continuously focusing on strengthening our R&D capabilities to secure long-term growth drivers. We plan to enhance our future growth momentum based on an expanded innovative drug pipeline and global competitiveness."
Jongkundang is also targeting achievements in the biopharmaceutical sector. It is currently conducting global Phase 1 and 2a clinical trials for its antibody-drug conjugate (ADC) cancer drug candidate CKD-703. The first patient has been registered in the United States, and trials are underway for patients with solid tumors, including non-small cell lung cancer. Clinical approval has also been obtained in South Korea, with patient registration expected in the first half of the year. The company plans to expand its clinical trials to Europe and other regions in the future.
An industry expert commented, "Jongkundang has secured market responsiveness through stable revenue and infrastructure. If it can connect its own drug development and technology exports to future successes, its corporate value is expected to increase further."
* This article has been translated by AI.
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