Dongwha Pharmaceutical is diversifying its revenue streams by focusing on over-the-counter (OTC) products. In addition to its established items like the digestive aid Hwalmyungsoo, the cold remedy Pankol, and the wound treatment Fusidin, the company has introduced the toothpaste-like gum treatment Itchi and the lip treatment Qulip as new sources of revenue. The company plans to expand its global business in the second half of the year as part of its growth strategy.
According to Dongwha Pharmaceutical, sales for key products in the first quarter of this year were led by Hwalmyungsoo at 21.7 billion won, followed by Pankol at 15.8 billion won, Itchi at 11.6 billion won, and Fusidin at 5.5 billion won. Notably, Itchi, which recorded annual sales of 41.6 billion won last year, has grown approximately 18% year-over-year in the first quarter, establishing itself as a key OTC product.
The growth of Itchi is attributed to its user-friendly design. Unlike traditional oral gum treatments, Itchi allows users to manage gum disease simply by brushing their teeth, reducing the burden of medication. A company representative stated, "The ability to incorporate gum care into daily brushing habits has resonated with consumers."
Qulip has also established itself as a new growth product. As a lip treatment applied like a lip balm, it surpassed 6 billion won in cumulative sales within about a year of its launch in January. The company has focused on targeting pharmacies through product presentations and pharmacist training since its initial release.
In pharmacies, Qulip is seen as creating new treatment demand rather than merely replacing existing lip balm needs, thereby expanding the pharmacy lip care market. According to IQVIA, the pharmacy lip care market is expected to grow by 40% in 2025, while Qulip is projected to achieve a growth rate of approximately 662% during the same period. This shift has led consumers who previously purchased lip balm from cosmetic stores to visit pharmacies in search of treatment products, further expanding the related market.
Dongwha Pharmaceutical plans to accelerate its global business expansion in the second half of the year, leveraging its existing OTC competitiveness. Earlier, the company acquired a 51% stake in the Vietnamese pharmacy chain Trung Son Pharma for about 39.1 billion won to secure a local distribution network, strengthening its health supplement and pharmaceutical business. This strategy focuses on securing sales channels rather than merely exporting products, with key items in the local market including Gas Hwal and Saengsaeng Ton, as well as Hong Sam Gold.
Despite recording a net loss of over 10 billion won last year due to aggressive expansion in Vietnam, this is viewed as a strategic move to secure a foundation for long-term growth. An industry insider noted, "Overseas ventures carry significant initial investment burdens, so establishing a distribution network is more important than short-term results," adding that leveraging OTC competitiveness will be crucial for the success of CEO Yoon In-ho's administration, which marks its first anniversary.
Upon taking office, Yoon In-ho outlined a vision to transform the company into a global healthcare enterprise through business diversification. The company is currently exploring entry into major overseas markets, including North America, with plans to expand the intellectual property of existing OTC products and broaden its product range to align with consumer demand and regulatory environments in different countries.
A Dongwha Pharmaceutical representative stated, "We are comprehensively considering market potential, regulatory environments, local consumer demand, and distribution partnerships as we evaluate entry into key overseas markets. We plan to build a portfolio that aligns with the characteristics of each country's market, extending beyond OTC to include health functional foods and wellness products."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.