Bukwang Pharmaceutical
Business results 2023
Disclaimer
This presentation contains forward-looking statements about Bukwang Pharmaceutical Co., Ltd. Such statements are related to incidents of the future and not of the past, and include business status and financial performance that the company predicts for the future. The predictions and estimations have
inherent uncertainties and risks, so please keep in mind that the company's
actual future performance may differ from the estimated performance. The inherent uncertainties and risks include changes in relevant rules and regulations, changes in general business environment and fluctuations in the financial market.
Contents
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2
3
Key Management Status
R&D updates
Appendix
Key Management Status
Summary of the annual consolidated performance for 2023
Key Management
Status
Total Revenue | Operating Income | ||||||
Total Revenue | Operating Income | ||||||
Operating Profit Margin |
R&D expenses | (Unit: 100 million KRW) |
R&D expenses, The parentheses indicate the R&D expenditure as a percentage of revenue
Total Revenue
-34.0% | -0.1% | 346 | |
-29.7% | 243 | ||
1,909 | (27.4%) | ||
(12.7%) | |||
1,259 | |
-2 | -375 |
2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
- The decrease in revenue and operating profit is attributed to management improvement measures implemented in the third and fourth quarters of 2023
- Efforts to enhance financial soundness by reducing credit sales, shortening accounts receivable cycles, and reducing distribution inventory
- Tight adjustment of distribution margins that had been managed loosely
- Reconfiguration of product portfolios through careful profitability analysis, including adjustments to underperforming products
- The sales volume of prescription drugs, a key revenue factor, is showing an increasing trend
- R&D expenses have increased due to the final stages of the JM-010 European Phase 2 clinical trial
5
Key Issues and Business Outlook
Key Management
Status
Revenue, operating profit margin, | Highlights |
R&D expenditure ratio trend | |
Operating | R&D | Total Revenue | |
Profit Margin | |||
expenditure- | |||
to-revenue |
13.4% | ratio | 27.4% | ||
12.3% | 12.7% | |||
Expected | ||||
Turnaround | ||||
to Surplus | ||||
2.4% | 3.1% | -0.1% | ||
-29.7% | ||||
1,697 | 1,825 | 1,909 | ||
1,259 | ||||
2020 | 2021 | 2022 | 2023 | 2024* |
Highlights of 2023
- During the process of restructuring our client base focusing on key trading partners, there have been some returns and discontinuations of shipments
- Supply issues have arisen with certain items such as antiviral agents
- Reverse-baseeffect on COVID-19 beneficiary items
Business Outlook for 2024
- The release of the new CNS drug Latuda is expected to increase revenue in the CNS sector
- Efforts to reduce return rates through efficient wholesale supply and inventory management have been completed, and this is expected to lead to improved profitability
- Successful stabilization of the sales department's organization is enabling exploration of various growth opportunities
*Expected revenue for 2024
6
Ethical Drug(ETC) Prescriptions Results
Key Management
Status
Quarterly Trends in outpatient prescriptions Highlights
Prescriptions | Prescriptions growth rate (YoY) | ||
(100million | |||
won) | |||
10.1% | 11.0% | ||
5.5% | |||
4.8% | |||
382 | |||
365 | 366 | ||
357 | |||
Q1 23 | Q2 23 | Q3 23 | Q4 23 |
Prescriptions data based on UBIST (*Except hospital prescriptions)
Q4' 23 Highlights
- Prescriptions-drivengrowth in focused management items (YoY)
- Legalon (+8.7%), Dexid+Thioctacid (+6.1%), Feroba-You (+6,1%), Respiratory products (+14.4%), CNS products (+2.1%)
Q1' 24 Highlights
- New prescriptions of Zaledeep
- Sustained growth in key strategic items such as Dexid, Legalon
- Strengthening of Feroba-You in hospital's channel activities - reinforcing activities in Gastroenterology and Nephrology
- Preparation for the release of Latuda - establishment of a new organization in the medical department
7
Key Management Status - Management Goals for 2024
Business/R&D/Sales Objectives and Strategies
Key Management
Status
1. Profit-driven sales and marketing
Achieving a surplus in 2024
- Expansion of market share through growth in strategic product categories for ETC
- Increase in CNS sales
-Successful launch of the new CNS drug Latuda
-Activation of existing CNS product sales such as Jaledeep
- Securing competitiveness through efficient distribution strategies and restructuring of sales networks
2. Building a profitable product portfolio and maintaining competitive R&D efforts
Acquisition of products and new drug development to improve operating profit
- Reconstruction of product portfolios based on contribution margin
- Continual pipeline development for the future including new drugs, improved drugs, and generic development
- Sustaining global open innovation strategies
- Establishment of strategies for early realization of appropriate drug values
3. Securing competitive production costs | 4. Driving the enhancement of business |
processes and stabilizing the organization |
Cost-competitive production of products and effective inventory management
Implementation of business systems and structures to ensure transparency and competitiveness
Establishment of a competitive production system | Establishment of organizational operating systems for | |
| Company-wide production management | standardization and enhancement of business processes |
| Compliance with production, returns, and inventory management | Implementation of business systems and structures to ensure |
regulations | transparency and competitiveness |
8
R&D updates
Latuda : Treatment for Schizophrenia/bipolar depression
R&D updates
Indication & Mode of action | Contract |
Antipsychotic drug developed by Sumitomo Pharma in | Entered into a License agreement with Sumitomo |
Japan | Pharma (Apr, 2017) |
Treatment of Schizophrenia/bipolar depression | Bukwang has exclusive development and |
Lurasidone acts as an antagonist of dopamine D₂ receptor, | commercialization right in Korea |
serotonin 5-HT₂ receptor, and 5-HT7 receptor |
Market Size
- After FDA approval in October 2010, achieved North American sales of USD 1.5 billion in 2022
- Marketed in over 53 countries (US, Canada, EU, UK, Switzerland, Russia, Japan, China, Singapore, Thailand, Hong Kong, Taiwan, Australia, United Arab Emirates (UAE), Kuwait, Saudi Arabia and Brazil)
Progress Situation
- Approval of phase 3 study in Korea (Aug, 2017)
- Phase 3 study patient enrollment completed (June, 2022)
- Positive phase 3 study top-line results reported. (July, 2022)
- NDA submission to the Ministry of Food and Drug Safety (MFDS) in Korea (Oct, 2022)
- Application for health Insurance coverage (Sep, 2023)
- NDA approval by the MFDS (Nov, 2023)
Upcoming Schedule
Application for health Insurance coverage | NDA Approval Drug reimbursement listing & Commercial | |
Launch | ||
Q3 2023 | Q4 2023 | H2 2024 |
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Disclaimer
Bukwang Pharm. Co. Ltd. published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 03:08:04 UTC.