Boryung Nearing 1 Trillion KRW in Annual Sales for the First Time

Boryung is getting closer to achieving 1 trillion KRW ($740 million) in annual sales for the first time, supported by strong third-quarter results. Its growth has been boosted by its co-promotion and acquisition strategy for original products.

According to financial information provider FnGuide on the 29th, Boryung's consolidated revenue for this year is expected to reach 1.0371 trillion KRW, up roughly 20% from last year, marking the first time in the company’s history that annual revenue is anticipated to surpass 1 trillion KRW.

Boryung’s third-quarter performance brought this goal closer, with consolidated revenue reaching 271 billion KRW, a 30.1% increase from the same period last year, and operating profit rising 5.4% to 19.5 billion KRW. The company has managed to grow both revenue and profitability simultaneously.

Year-to-date, Boryung’s cumulative revenue stands at 760 billion KRW, up 20% from the same period last year. Should this trend continue, reaching 1 trillion KRW by year-end appears well within reach. If achieved, Boryung would become the seventh traditional pharmaceutical company in Korea to cross this milestone, or the ninth within the broader pharmaceutical and biotech industry.

Boryung’s core strategies this year have focused on profitability, market share expansion, maximizing in-house product strength, and investment growth. The company has set goals of reaching 1 trillion KRW in revenue and 85 billion KRW in operating profit on a consolidated basis. Cumulative operating profit for the first three quarters stands at 55.9 billion KRW, achieving 65% of the annual target.

A key driver of Boryung’s recent growth is its large-scale co-promotion strategy. Despite a drop in sales for the Special Care segment (acute illness treatments and hospital medications) due to recent conflicts within the medical industry, the segment has shown strong growth, particularly with K-CAB, a gastroesophageal reflux disease treatment jointly promoted with HK inno.N since this year.

The Special Care segment, which generated 171.8 billion KRW in revenue last year, has shown consistent growth this year with quarterly revenues of 62.2 billion KRW in Q1, 76.3 billion KRW in Q2, and 80.9 billion KRW in Q3. Third-quarter revenue increased 83% year-on-year, surpassing last year’s total on a cumulative basis.

Boryung commented, “We plan to focus on expanding coverage for co-promotion products in the short term, while creating synergies through the introduction of high-profit products.”

Boryung’s Legacy Brands Acquisition (LBA) strategy has also been performing well. Through this strategy, Boryung acquires rights to established, off-patent global brands with strong market potential. Boryung began this initiative in 2020 to maximize its in-house product strength, acquiring the rights to the cancer drugs Gemzar and Alimta from Eli Lilly in 2020 and 2022, as well as the rights to the schizophrenia treatment Zyprexa in 2021.

Gemzar sales have grown from 10.9 billion KRW in 2022 to 16.9 billion KRW last year, reaching 14.9 billion KRW in cumulative sales by Q3 of this year. Alimta generated 2.26 billion KRW in sales last year, with Q1 and Q2 sales this year remaining steady at 5.3 billion KRW and 5.8 billion KRW before jumping to 19.5 billion KRW in Q3, already surpassing last year’s total. Since acquiring Zyprexa, Boryung’s central nervous system (CNS) business has more than doubled.

The Kanarb Family of hypertension treatments has also been a robust revenue stream for Boryung, with Q1, Q2, and Q3 sales of 38.1 billion KRW, 40.2 billion KRW, and 35.5 billion KRW, respectively, reflecting consistent growth of 15.5%, 9.9%, and 7.1% compared to the same periods last year. Boryung plans to expand the Kanarb product lineup next year with three new product launches.

However, challenges such as dispute over healthcare policies between doctors and the government could impact the goal of achieving 1 trillion KRW in sales. Sales of in-hospital medications at tertiary hospitals have decreased due to these conflicts, with the antibiotic Maxipime and the antiemetic Nazeron showing year-on-year declines of 27-28% in Q3, following similar drops in Q2.

A Boryung representative stated, “We are striving towards the 1 trillion KRW sales target, though it’s been challenging due to recent conflicts. Nevertheless, with strong growth from major products like the Kanarb Family and our oncology segment, we remain optimistic about achieving our goal.”