ST PHARM, a subsidiary of Dong-A Socio Holdings specializing in the manufacturing of raw materials for pharmaceuticals, announced on the 24th that its consolidated revenue for the second quarter was 68.2 billion won, an increase of 52.8% compared to the same period last year.
The operating profit for the second quarter was 12.8 billion won, turning to profit compared to an operating loss of 3.1 billion won in the same period last year. The net profit for the period was provisionally recorded at 4.7 billion won, an increase of 420.7%.
The company explained that its revenue grew significantly centered on commercialization projects within the contract development and manufacturing organization (CDMO) business.
The company has facilities for the production of 'oligonucleotide', a raw material for oligonucleotide therapies.
According to the company, the overall revenue from oligo and small molecule new drug CDMO businesses increased by 101% compared to the same period last year. The operating profit margin reached 18.8%.
By business segment, oligo revenue increased by 83% compared to the same period last year, reaching 43.5 billion won, while small molecule revenue for the same period increased by 312.2%, recording 6.7 billion won.
As of the end of last month, the order backlog for oligo CDMO was approximately 320 billion won, and the order backlog for small molecule CDMO was approximately 55 billion won, the company announced.
A representative from ST PHARM said, "The schedule for the shipment of clinical items is concentrated in the fourth quarter, and the revenue growth trend centered on commercialization projects is expected to continue until the third quarter," adding, "So far this year, discussions on a total of eight orders have been completed, and additional discussions on 17 more orders are ongoing."
The company indicated that commercialization approval from the U.S. Food and Drug Administration (FDA) for a hereditary angioedema treatment, one of the oligo CDMO pipelines, is scheduled for next month, and FDA commercialization approval for a mitochondrial deficiency syndrome treatment is expected within this year.