(Health Korea News / Yu Ji-in) Dong-A ST’s sales increased in the second quarter of this year due to the growth of the prescription drug (ETC) division, but operating profit decreased due to increased R&D costs. Sales increased 2.3% year-on-year to KRW 157.7 billion (KRW 154.1 billion in the second quarter of 2023), while operating profit decreased 18.9% year-on-year to KRW 7.1 billion (KRW 8.8 billion in the second quarter of 2023). In the prescription drug division, sales of some prescription drugs decreased due to a worsening business environment, but increased 5.3% year-on-year due to the growth of the human growth hormone Growtropin.
The representative products that drove the growth in sales of prescription drugs are Grotropin (human growth hormone) and Motilitone (functional dyspepsia treatment). Compared to the same period last year, Grotropin recorded KRW 28.2 billion (KRW 20.9 billion in the second quarter of 2023), up 35.4%, and Motilitone recorded KRW 9 billion (KRW 7.8 billion in the second quarter of 2023), up 16.3%.
In addition, compared to the same period last year, Suganon (diabetes treatment) decreased by 10.2% to KRW 6.2 billion (KRW 6.9 billion in the second quarter of 2023). Styren (gastritis treatment) decreased by 14.8% to KRW 4.2 billion (KRW 4.9 billion in the second quarter of 2023), Jublia (nail fungus treatment) increased by 2.3% to KRW 7.5 billion (KRW 7.3 billion in the second quarter of 2023), Opalmon (lumbar spinal stenosis treatment) decreased by 1.1% to KRW 6.7 billion (KRW 6.7 billion in the second quarter of 2023), Gaster (peptic ulcer treatment) decreased by 12.9% to KRW 4.7 billion (KRW 5.4 billion in the second quarter of 2023), Idarbi (hypertension treatment) increased by 1.8% to KRW 2.9 billion (KRW 2.9 billion in the second quarter of 2023), and Flibas (benign prostatic hypertrophy treatment) decreased by 2.7% to KRW 1.7 billion (KRW 1.8 billion in the second quarter of 2023). Turion (antihistamine) recorded sales of KRW 2.1 billion (KRW 2.6 billion in the second quarter of 2023), down 16.5%.
The overseas business division showed a 7.8% decrease year-on-year due to the base effect of sales of Canbaccus (Cambodia). Clocerin/Clofazimine (tuberculosis treatment) increased 44.1% year-on-year to KRW 3.9 billion (KRW 2.7 billion in the second quarter of 2023), and Terizidone (tuberculosis treatment) increased 8348.8% to KRW 1.7 billion (KRW 0 billion in the second quarter of 2023). On the other hand, Canbaccus recorded KRW 21.7 billion (KRW 24.5 billion in the second quarter of 2023), down 11.6%, Darbepoetin Alfa BS (anemia treatment) recorded KRW 3.7 billion (KRW 3.8 billion in the second quarter of 2023), and Growtropin (human growth hormone) recorded KRW 300 million (KRW 1.1 billion in the second quarter of 2023), down 72.2%, resulting in a decline in overall overseas sales.
Operating profit decreased by 18.9% due to increased R&D investment costs
Operating profit decreased by 18.9% year-on-year due to an increase in R&D costs and selling, administrative, and administrative expenses. The reason for the decrease in operating profit is explained by the fact that R&D costs in the second quarter of 2024 were 26.4 billion won (R&D costs in the second quarter of 2023 were 22.7 billion won), a 16.3% increase year-on-year. Dong-A ST is leading the way in new drug development, ranking second among domestic traditional pharmaceutical companies in terms of R&D investment costs in the first quarter.
In the R&D sector, Stelara biosimilar (DMB-3115) completed its application for product approval from the European EMA in June 2023 and the US FDA in October 2023. Its US subsidiary Neurobo Pharmaceuticals is conducting global phase 2 clinical trials of DA-1241, a MASH (metabolic steatohepatitis) and type 2 diabetes treatment, and global phase 1 clinical trials of DA-1726, a treatment for obesity, are also in progress.
DA-1241 was confirmed to improve fatty liver and liver fibrosis in preclinical trials, and synergy in improving liver fibrosis when used in combination with semaglutide was confirmed. DA-1726 showed better weight loss and cholesterol improvement compared to the obesity treatment drug Tirzepatide in preclinical trials despite greater food intake. It also confirmed better weight and body fat reduction compared to the obesity treatment drug Survodutide, which has the same mechanism as DA-1726 (GLP-1, Glucagon dual agonist). DA-8010, an overactive bladder treatment drug, completed its domestic phase 3 clinical trial in May 2024.
DA-8010 has been shown to have excellent efficacy and fewer side effects compared to existing antimuscarinic agents due to its high bladder selectivity.
The immunotherapy anticancer drug DA-4505 is currently in domestic phase 1 clinical trials, and showed a more excellent tumor suppression effect than the AhR antagonist being developed by a global pharmaceutical company in preclinical trials. When DA-4505 was co-administered with an anti-PD-1 immune checkpoint inhibitor, it showed a synergistic tumor suppression effect. The dementia treatment drug DA-7503 is a small molecule compound that selectively inhibits tau aggregation and hyperphosphorylation, which are the main causes of Alzheimer’s disease and primary tauopathy, and is currently in domestic phase 1 clinical trials. In preclinical trials, it was confirmed to have effects on improving tauopathy and cognition and memory.
Dong-A ST is expanding its development of next-generation modality new drugs through the acquisition of Abtis, a company specializing in ADC (Antibody-Drug Conjugates).
A Dong-A ST official said, “Currently, Abtis is developing Abclick, a third-generation ADC linker technology that can selectively conjugate drugs at different locations,” and “We are developing AT-211, an Abclick-based Claudin 18.2 ADC candidate targeting gastric and pancreatic cancer, and plan to apply for a domestic phase 1 clinical IND by the end of 2024.”
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