Korea United Pharm, widely known for its stronghold in incrementally modified drugs (IMDs), is gearing up for its next growth phase with high-margin therapies, including obesity treatments and anticancer drugs.
According to the Financial Supervisory Service’s electronic disclosure system on March 31, Korea United Pharm recorded KRW 288.7 billion in revenue and KRW 56.2 billion in operating profit last year, marking year-on-year increases of 6.7% and 4.9%, respectively. The company posted an operating margin of 19.5%. IMDs accounted for approximately 60% of total sales, serving as the primary growth engine.
Since launching its first IMD in 2010, Korea United Pharm has rolled out a total of 17 IMD products. As the IMD portfolio expanded, so did the company’s performance. Revenue more than doubled from KRW 134.8 billion in 2010, with only one year of decline—in 2020. Over the same period, operating profit surged from KRW 19.8 billion to KRW 56.2 billion, while the operating margin improved from 15.2% to 19.5%, underscoring not only topline growth but also industry-leading profitability.
The company plans to maintain its IMD-focused strategy in 2024. In the third quarter, Korea United Pharm will launch the dyslipidemia treatments Pitaric Capsule and Artmac Combigel. In the fourth quarter, the company aims to introduce Seretrol Actibear, an inhalation therapy for asthma and chronic obstructive pulmonary disease (COPD). Korea United Pharm targets increasing its IMD sales ratio to 70% by 2026.
In a recent report, Ha Tae-ki, an analyst at SangSangIn Securities, noted, “The company has steadily enhanced its competitiveness through the annual launch of IMDs. In 2025, it plans to release three new IMD products, with Seretrol Actibear expected to offer a competitive edge by providing 60 doses per unit, double the current standard of 30. If launched successfully, it could rapidly boost sales.”
In addition to IMDs, the company is ramping up efforts to secure future growth drivers. Korea United Pharm has purchased a plot of roughly 26,400 square meters in Sejong City to construct a new manufacturing facility. The investment aims to preemptively accommodate rising IMD demand, with completion scheduled for 2029.
The company is also entering the obesity treatment space with plans to develop a biosimilar of semaglutide, the blockbuster active ingredient in Novo Nordisk’s Wegovy. At a shareholder meeting on March 26, CEO Kang Duk-young stated that the company is already capable of manufacturing the semaglutide-based biosimilar and is preparing for clinical trials.
New drug development is also underway. Korea United Pharm is expanding its novel drug pipeline through U&S Bio, a joint venture with Seoul National University Holdings. The company is reinvesting profits from IMDs into innovative drug R&D. In April last year, it also entered into an agreement with Y-Biologics to co-develop antibody-drug conjugates (ADCs) for oncology treatment.
“We are currently developing about 30 IMD products and plan to launch two to three new items annually,” a Korea United Pharm official said. “To prepare for market expansion and the expiration of original drug patents, we are investing in obesity treatments, oncology drugs, and new therapies such as P-CABs (potassium-competitive acid blockers) for gastroesophageal reflux disease as future growth engines.”
