Donga ST’s operating profit increased by 51.4% in the third quarter…thanks to even growth in prescription drugs and overseas business

(Health Korea News / Lee Si-woo) As expected by this magazine, Dong-A ST’s sales in the third quarter of 2024 showed significant growth. It is interpreted that sales increased due to even growth in the ETC (prescription drug) division and overseas business division. Operating profit rose by as much as 50%. (See related article below)

According to the provisional operating results for the third quarter of 2024 (based on separate financial statements) announced by the company on the 1st, Donga ST’s sales in the third quarter were KRW 179.5 billion, a 19.5% increase compared to the same period last year (KRW 150.2 billion).

During this period, operating profit also surged 51.4% from 13.1 billion won to 19.8 billion won. The company analyzed that this was due to increased sales of growth hormone drug ‘Grotropin’ and decreased R&D costs.

Cumulative sales in the third quarter were KRW 477.2 billion, up 8.6% from the same period last year (KRW 439.5 billion), and cumulative operating profit was KRW 27.6 billion, down 3.1% from the same period last year (KRW 28.5 billion).

Net profit in the third quarter recorded -89.4% of the year’s performance, but the deficit showed a decrease in cumulative performance (-57.6%).

An official from Donga ST told Health Korea News on this day, “The decrease in net profit is due to an increase in other costs and an increase in financial costs.” He added, “In particular, this is due to an increase in interest costs due to borrowing funds for early repayment of CB (conversion event), and partial repayment is due to an increase in interest costs. Accordingly, interest costs incurred in the future are expected to decrease.”

(Dong-A ST provisional operating results for the third quarter of 2024 (based on separate financial statements))

By sector, the ETC division posted sales of KRW 120.5 billion (KRW 108.6 billion in the third quarter of 2023), an 11.0% increase compared to the same period last year, due to the growth of Grotropin and Motiriton. The overseas business division recorded sales of KRW 46 billion (KRW 31.1 billion in the third quarter of 2023), a 47.6% increase compared to the same period last year, due to the base effect and recovery in sales volume from Can Bacchus (Cambodia).

In the R&D sector, Stelara biosimilar Imuldosa (project name DMB-3115) obtained product approval from the U.S. FDA in October of this year and received a recommendation for product approval from the European CHMP (EMA’s Committee for Medicinal Products for Human Use).

Neurobo Pharmaceuticals, an American subsidiary, is conducting Part 1 and Part 2 of a global phase 2 clinical trial for ‘DA-1241’, a treatment for MASH (metabolic steatohepatitis) and type 2 diabetes. The obesity treatment drug ‘DA-1726’ is also undergoing global clinical trials, Phase 1 and Part 2.

DA-1241 was confirmed to be effective in improving fatty liver and liver fibrosis in preclinical studies, and also confirmed a synergistic effect in improving liver fibrosis when used in combination with Semaglutide.

As a result of preclinical results, DA-1726 was confirmed to have better weight loss and cholesterol improvement effects compared to the obesity treatment agent Tirzepatide, and Servodutide (Glucagon dual agonist), which has the same mechanism as ‘DA-1726’ (GLP-1, Glucagon dual agonist). Survodutide) showed better weight and body fat reduction compared to obesity treatment drugs containing the ingredient Survodutide. This drug has confirmed excellent safety and tolerability in Part 1 of the current global clinical trial.

Dementia treatment drug ‘DA-7503’ is undergoing phase 1 clinical trials in Korea. This candidate is a low-molecular-weight compound that selectively inhibits tau aggregation and hyperphosphorylation, the main causes of Alzheimer’s disease and primary tauopathies, and has been confirmed to be effective in improving tauopathies and cognition and memory in preclinical trials.

Dong-A ST is also conducting phase 1 domestic clinical trials for its immunotherapy drug ‘DA-4505’. A superior tumor suppression effect was confirmed when compared preclinically with an AhR antagonist being developed by a global pharmaceutical company. DA-4505 was found to have a greater tumor suppressive effect when administered in combination with an anti-PD-1 immune checkpoint inhibitor.

Driven by this momentum, Dong-A ST is also expanding the development of new next-generation modality drugs through the acquisition of Aptis, a company specializing in ADCs. Aptis has developed AppClick, a third-generation ADC linker technology that can site-selectively conjugate drugs. We have completed preclinical trials for DA-3501 (AT-211), an AppClick-based candidate for Claudin18.2 ADC targeting stomach and pancreatic cancer, and plan to apply for a domestic phase 1 clinical trial (IND) in early 2025.

◆ Prescription drugs: KRW 120.5 billion, an increase of 11.0% compared to the same period last year (KRW 108.6 billion in the third quarter of 2023)

①Grotropin (human growth hormone): KRW 33.8 billion, up 30.9% compared to the same period last year (KRW 25.8 billion in the third quarter of 2023)

② Motiriton (functional indigestion treatment): KRW 9.3 billion, up 34.6% compared to the same period last year (KRW 6.9 billion in the third quarter of 2023)

③Suganon (diabetes treatment): KRW 6.6 billion, down 3.1% compared to the same period last year (KRW 6.8 billion in the third quarter of 2023)

④Styrene (gastritis treatment): KRW 4.6 billion, down 8.8% compared to the same period last year (KRW 5 billion in the third quarter of 2023)

⑤Jublia (nail fungus treatment): KRW 7.2 billion, down 12.2% compared to the same period last year (KRW 8.2 billion in the third quarter of 2023)

⑥Opalmon (lumbar spinal stenosis treatment): KRW 7 billion, up 1.9% compared to the same period last year (KRW 6.9 billion in the third quarter of 2023)

⑦Gaster (peptic ulcer treatment): KRW 5.6 billion, down 2.1% compared to the same period last year (KRW 5.7 billion in the third quarter of 2023)

⑧Edalbi (hypertension treatment): KRW 3 billion, up 2.7% compared to the same period last year (KRW 3 billion in the third quarter of 2023)

⑨Flivas (prostatic hyperplasia treatment): KRW 1.7 billion, down 9.9% from the same period last year (KRW 1.9 billion in the third quarter of 2023)

⑩Turion (antihistamine): KRW 2.3 billion, up 3.5% compared to the same period last year (KRW 2.2 billion in the third quarter of 2023)

◆Overseas business: KRW 46 billion, an increase of 47.6% compared to the same period last year (KRW 31.1 billion in the third quarter of 2023)

①Can Bacchus: KRW 22.1 billion, an increase of 63.6% compared to the same period last year (KRW 13.5 billion in the third quarter of 2023)

②Dabepoetin Alpha BS (anemia treatment): KRW 4.3 billion, up 3.0% compared to the same period last year (KRW 4.2 billion in the third quarter of 2023)

③Grotropin (human growth hormone): KRW 1.3 billion, up 113.5% compared to the same period last year (KRW 600 million in the third quarter of 2023)

④Crosserin (tuberculosis treatment): KRW 1.5 billion, down 57.6% from the same period last year (KRW 3.6 billion in the third quarter of 2023)

Copyright © Health Korea News Unauthorized reproduction and redistribution prohibited