Korean Pharmaceutical and Biotech Firms Thrive in International Markets

Major pharmaceutical and biotech companies in South Korea have reported strong performances in international markets during the first half of the year, despite domestic challenges such as government price cuts and reduced investment. Analysts attribute this success to the impact of high-revenue new drugs, the establishment of direct sales networks, and overseas business ventures like contract development and manufacturing (CDMO) and licensing fees.

According to industry reports, companies including Samsung Biologics, Celltrion, SK Biopharm, Yuhan Corporation, and Daewoong Pharmaceutical have all seen double-digit growth in sales and profits compared to the previous year, driven by increased overseas sales.

Samsung Biologics reported consolidated sales of 2.578 trillion won and an operating profit of 1.1672 trillion won for the first half of the year, marking increases of 28% and 29%, respectively, from the same period last year. This is the first time the company has surpassed 1 trillion won in operating profit in the first half. The rise in production rates at its first through fourth plants, along with increased contributions from its fifth plant and the Rockville facility in the U.S., combined with favorable exchange rates, have driven these results.

The company’s cumulative order amount has exceeded $21.7 billion. Given the nature of its CDMO business, which primarily serves global pharmaceutical companies, the expansion of production capacity and backlog of orders have supported its performance.

Celltrion achieved sales of 2.5387 trillion won and an operating profit of 773.7 billion won in the first half, representing increases of 41% and 97%, respectively, from the previous year. The growth was fueled by the expansion of its biosimilar product line in the European market. The drug 'Omnipaque' captured approximately 71% market share in Spain during the first quarter, while also achieving shares of 47%, 41%, and 31% in Portugal, Ireland, and Norway, respectively. 'Vegzelma' maintained a 28% share in the European bevacizumab market, marking 21 consecutive months as the market leader. Analysts expect the company to exceed its initial targets of 5.3 trillion won in annual sales and 1.8 trillion won in operating profit.

SK Biopharm demonstrated the effectiveness of its direct sales model in the U.S. with its epilepsy treatment 'cenobamate' (marketed as Xcopri in the U.S.). The expansion of prescriptions for Xcopri contributed to first-half sales of 475.3 billion won and an operating profit of 186.8 billion won, reflecting increases of 48.2% and 113.4%, respectively, from the previous year.

The key driver of these results was Xcopri's sales in the U.S., which reached 224.4 billion won in the second quarter, up 45.6% year-on-year and 13.5% from the previous quarter. Cumulative U.S. sales for the first half amounted to $284.5 million (approximately 422.1 billion won), achieving nearly half of the annual sales guidance of $550 million to $580 million.

Traditional pharmaceutical companies have successfully defended their performance through high-margin exports and milestone payments. Daewoong Pharmaceutical's export sales of 'Nabota' reached 94.1 billion won in the second quarter, a 54.2% increase from the previous year. Combined domestic and international sales of Nabota exceeded 103.4 billion won for the first time in a quarter.

Yuhan Corporation reported standalone sales of 1.1237 trillion won in the first half, surpassing the 1 trillion won mark for the first time in a half-year period. In the second quarter, licensing revenue reached 58.9 billion won, a 130.6% increase from the previous year, bolstered by a $30 million milestone from the commercialization of the lung cancer treatment 'Lecraza' in Europe, which was licensed to Janssen in May.

Jung Yoon-taek, head of the Pharmaceutical Industry Strategy Research Institute, noted, "Companies that actively pursued international market expansion rather than relying solely on the domestic market showed clear improvements in their first-half performance. I expect this trend to continue in the second half."