Ildong Pharmaceutical is accelerating its transformation into a drug development company by restructuring its research and development (R&D) system.
According to industry sources on June 10, Ildong Pharmaceutical will absorb its subsidiary Unovia on June 16. This move comes approximately two years and seven months after the two entities were separated to enhance the expertise and investment efficiency of the drug development organization. Key pipelines, including Unovia's glucagon-like peptide-1 (GLP-1) obesity treatment and the P-CAB class drug 'Padoprazan' for peptic ulcers, will be integrated into the main company structure.
Industry analysts view this merger as a response to changing policies. Recently, the government has revised drug pricing policies and introduced incentives for pharmaceutical companies with high R&D investment ratios. For companies with sales exceeding 100 billion won, the R&D expenditure ratio will increase from 5% to 7%, while for those below this threshold, it will rise from 7% to 9%.
Since the spin-off of Unovia, Ildong Pharmaceutical's R&D expenditure ratio has significantly decreased. The company's consolidated sales were 600.7 billion won in 2023, 614.9 billion won in 2024, and 566.9 billion won in 2025. In contrast, R&D spending plummeted from 95 billion won in 2023 to 46.2 billion won in 2024 and 35.5 billion won in 2025. On a separate basis, R&D expenses also dropped from 81.3 billion won in 2023 to 9.4 billion won in 2024, before rising to 25.3 billion won last year.
An industry insider noted, "Integrating the dispersed organizations will simplify management and may be advantageous for certification as an innovative pharmaceutical company."
There are interpretations suggesting this merger is a strategic move for future technology transfers, as negotiations with global pharmaceutical companies are typically more favorable when a single entity is involved. Unovia's obesity treatment 'ID110521156' has already shown tolerability and efficacy in Phase 1 clinical trials.
An Ildong Pharmaceutical representative stated, "We are focusing on more intensive R&D efforts in drug development and licensing to respond to changes in the market environment."
Ildong's more commercially viable pipelines include Padoprazan and the COVID-19 treatment 'Zokova.' Padoprazan, which was developed by Unovia and transferred to Daewon Pharmaceutical, is currently in Phase 3 clinical trials. As competition in the domestic P-CAB market intensifies, the speed of market entry will be crucial for success.
Zokova, co-developed by Ildong Pharmaceutical and Japan's Shionogi, received approval from the U.S. Food and Drug Administration (FDA) on May 29 for the indication of 'prevention after COVID-19 exposure.' It is recognized as the first oral treatment to prevent infection or onset of the disease, with Ildong holding the domestic rights.
After receiving emergency use authorization in 2022, Zokova generated sales of 100 billion yen (approximately 96.25 billion won) in the fourth quarter of that year. However, with the end of public funding due to the endemic phase, sales dropped to 82.9 billion yen (approximately 79.81 billion won) in 2023 and 51.8 billion yen (approximately 49.87 billion won) in 2024, raising concerns about profitability in the domestic commercialization process.
An industry expert remarked, "It is now a critical time to see if the main pipelines can translate into actual results, as technology transfers and commercialization outcomes will determine corporate value."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.