Daewoong Pharmaceutical : Reports Q1 2024 Financial Results

2024-0430

Daewoong Pharmaceutical Reports Q1 2024 Financial Results

Seoul, S. Korea, April 30, 2024

Daewoong Pharmaceutical (KRX: 069620.KS), recently announced its highest first-quarter earnings to date. The company reported revenues of KRW 296.6 billion and an operating profit of KRW 31.2 billion, reflecting slight increases from the previous year with growth rates of 1.5% and 0.6%, respectively. Consolidated figures included revenues of KRW 335.8 billion and operating profits of KRW 24.8 billion.

CEO Chang-jae Lee expressed confidence in the continued growth and success of Daewoong Pharmaceutical, stating, "Thanks to the balanced growth of our innovative drugs-Fexuclue, Enavlo, and NABOTA-we have achieved our greatest first-quarter performance. We are committed to further advancing next-generation pharmaceutical development and expanding globally. We aim for 'One Product, One Trillion Won' in sales, cementing our status as a leading pharmaceutical company in Korea."

Key Highlights (Unconsolidated) (unit: KRW billion)

	Q1 2024	Q1 2023	% Change
Revenue	296.6	293.3	+1.5%
Operating Profit	31.2	31	+0.6%

Product Development

Fexuclue (Fexuprazan)

Fexuclue, South Korea's 34th developed pharmaceutical, has emerged as a blockbuster in the country's gastrointestinal market. In the first quarter, prescription sales jumped 57% year-on-year to KRW 17 billion, marking the highest growth rate among the top ten gastroesophageal reflux disease treatments in South Korea. Further growth is expected through a new sales partnership with Chong Kun Dang Pharmaceutical, starting in the second quarter.

Fexuclue has also seen rapid international expansion, reaching 24 countries within 18 months of its release in 2022. Recently, Daewoong initiated clinical trials in China for the eradication of Helicobacter pylori, a bacterium identified by the World Health Organization as a Group 1 carcinogen, believed to infect approximately 50% of the Chinese population.

Envlo (Enavogliflozin)

Envlo, South Korea's 36th developed drug, is forecasted to see significant growth this year. Recent studies suggest Envlo has superior glucose-lowering effects compared to dapagliflozin, a well-known diabetes treatment soon to be discontinued in Korea. This makes Envlo a promising alternative for Korean diabetes patients. Envlo is anticipated to be an excellent alternative for Korean diabetes patients.

The company is also expanding Envlo's global presence, having filed marketing authorization applications in 12 countries, including Mexico-Central America's largest market-within a year of its launch in Korea. Daewoong aims to introduce Envlo in 15 countries by 2025 and expand to 50 countries by 2030, establishing it as a leading diabetes medication internationally.

NABOTA (Prabotulinumtoxin-A)

This year marks the 10th anniversary of NABOTA, Daewoong's Prabotulinumtoxin-A product, which has dominated the Korean cosmetic market for 30 years. The company has recently outlined a vision to reach KRW 500 billion in sales by 2030 and is preparing to introduce innovations in the U.S. treatment market.

Current clinical trials in the U.S. are targeting chronic migraines, with Phase II results expected next quarter and Phase III trials for various migraine conditions scheduled for next year. Daewoong is also preparing trials for other indications, including gastroparesis and PTSD, aiming to enter the U.S. treatment market by 2028. Research into treatments for hair loss is ongoing.

Forward-Looking Statements:

This press release contains forward-looking statements that are based on the current beliefs and expectations of Daewoong Pharmaceutical's management. Factors that could cause or contribute to such differences include, but are not limited to: (1) Regulatory and governmental approvals: The approval process for pharmaceutical products is subject to extensive regulations and may involve uncertainties and delays. Any failure to obtain necessary approvals or the occurrence of delays in the approval process could adversely affect Daewoong Pharmaceutical's business and results of operations; and (2) Clinical trials: The success of Daewoong Pharmaceutical's products depends on the results of clinical trials. The results of early clinical trials may not be indicative of the results of later-stage or larger-scale clinical trials.

About Daewoong Pharmaceutical

Daewoong Pharmaceutical (KRX: 069620.KS), established in 1945, is a global pharmaceutical company based in South Korea. The company is committed to the development, manufacturing, and commercialization of pharmaceutical products, with a mission to provide the most beneficial total solutions, including pharmaceuticals and services, which contribute to improving the quality of life of valued consumers. Operating with a keen focus on both domestic and international markets, Daewoong Pharmaceutical specializes in developing treatments for intractable and rare diseases. The company's diverse portfolio encompasses novel drugs, biologics, new products, and C&D, all supported by in-house research and development, open collaboration, and advanced manufacturing facilities.

Marking significant achievements in drug development, Daewoong Pharmaceutical has successfully developed novel drugs for GERD, featuring the active ingredient Fexuprazan, and for Type 2 diabetes, with the active ingredient Enavogliflozin, in two consecutive years. The company is currently advancing in the development of First-in-Class Oral Anti-Fibrotic Agent for Idiopathic Pulmonary Fibrosis, utilizing Bersiporocin as a PRS Inhibitor. Notably, Bersiporocin has been designated by the U.S. FDA as an orphan drug and a Fast Track development product. Daewoong is dedicated to completing the Phase 2 clinical study of this drug by 2025. For more information, visit Daewoong Pharmaceutical's website and LinkedIn page. Media inquiries can be directed to Daewoong's PR at [e-mail].