April 20, 2024

• 

[THE INVESTOR] South Korea’s three largest pharmaceutical companies are expected to report double-digit percentage fall in operating profit in the third quarter as they beef up spending on research and development, data showed on Oct. 18.

The operating profit of Hanmi Pharmaceutical, Yuhan and Green Cross are estimated to have plunged between 11 to 60 percent in the quarter ended Sept. 30, compared with a year ago, according to market data provider FnGuide.

Hanmi is forecast to see the largest drop among the top three pharma firms by reporting 13.4 billion won (US$11.80 million) third-quarter operating profit, down 62.5 percent on year. Its sales are likely to fall 8.9 percent on-year to 244.3 billion won.

“Hanmi’s slowdown in sales growth was triggered by China’s state-led campaign to slash drug prices which started from the first quarter,” said Kim Mi-hyun, an analyst at Yuanta Securities.

Yuhan’s operating profit is expected to decrease 11.7 percent on-year to 28 billion won while sales are forecast to grow 8.6 percent on-year to 338.4 billion won.

The operating profit of Green Cross is also likely to plunge 14.5 percent on-year to 41.2 billion won, and sales are forecast to increase 12.2 percent on-year to 330.9 billion won.

Industry watchers said that major firms sharply expanded R&D spending earlier this year, taking a page from Hanmi’s aggressive investment that has led to a series of deals.

By Park Han-na (hnpark@heraldcorp.com)