April 19, 2024

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[THE INVESTOR] Daehan New Pharm, a Seoul-based pharmaceutical and animal health product provider, announced it has started selling an anti-cancer supplement, entering the market for the first time. 

The Kosdaq-listed firm said on Dec. 19 that it had signed a contract with Hospicare, a Korean cancer treatment equipment manufacturer, to take over the exclusive sale rights of Iscador, an anti-cancer injection made by a Switzerland-based company.

Hospicare has been importing and selling the injection in the Korean market since February, but it decided to hand the sale rights over to Daehan New Pharm, which distributes pharmaceutical products in the Korean market, to boost sales. 

Made of mistletoe, Iscador consists of substances aimed at helping fight cancer and reinforce immunization. 

“The sales of Iscador will add more than 2 billion won ($1.69 million) to our annual sales next year,” said a company spokesman.

Daehan New Pharm has been ramping up its sales of diabetes, obesity and some beauty products, which stood at 90.2 billion won last year. With Iscador, the company is expected to raise about 109 billion won in annual sales this year.

Established in 1984 as an animal medicine developer, the company has grown to become a pharmaceutical and health product manufacturer for both humans and animals.  

“Treatments for aging diseases and aesthetic purposes have recently become the key drivers of the company’s growth,” the spokesman said. “The company is considering expanding its lineup of well-being related treatments amid the rapid aging phenomenon.”

The firm is a provider of white jade injection and cosmetic brand Luthione, and the Thioctic acid injection commonly called the “Cinderella injection.”

“Because the animal medicine market is shifting from cattle to pets, we are also preparing some treatments for pets these days, which we consider as a new source of profit in the era of one-person households with pets,” the spokesman added.

The company is also seeking expansion in the biomedicine business. It already has a serum-free medium plant with a monthly capacity of 350,000 liters. The company received the core technology from Japan’s CSTI in 2014, foreseeing growing demand for the serum-free medium with the growth of biosimilars. It is also currently preparing to establish a research and development center in Osong, a government-promoted complex for cutting-edge medical businesses, to accelerate development of stem cell treatments.

“Daehan New Pharm has been growing about 20 percent for16 consecutive quarters, and has even brighter prospects in future,” said a financial investor who asked for anonymity. “The company is making serious efforts to diversify its businesses, from animal vaccines to cosmetics, and even eyeing the oil market.”

The company invested in two oil mines in Kazakhstan in 2007, according to the investor.

“One of the mines was found with ample oil, which may be a lucrative source of profit for the company in the near future,” he said.

The BNG block in Kazakhstan has produced oil more than 1,000 barrels, expecting higher production volume after successful testing on deep wells, according to the company. 

By Song Su-hyun/The Korea Herald (song@heraldcorp.com)

This is the 32nd in a series of articles analyzing major companies by market capitalization traded on the tech-heavy Kosdaq market. -- Ed