SK biopharmaceuticals struggles to stay afloat amid plunge in profits

SK biopharmaceuticals CEO Lee Dong-hoon Korea Times file

By Lee Kyung-min

SK biopharmaceuticals, the drug manufacturing affiliate of SK Group, is struggling despite brisk sales of its epilepsy drug cenobamate, data showed Monday.

The epilepsy drug sold under the brand names Xcopri in the U.S. and Ontozry in the European Union, is a medication used to treat the partial-onset of seizures in adults.

Its sales came to 246.2 billion won ($190 million) last year, down 41.2 percent from a year earlier. It registered operating losses and net losses of 131.1 billion and 139.4 billion, respectively.

The poor performance was not in any way mitigated by the success of cenobamate in the U.S., where its sales more than doubled to 169.2 billion won.

Central to the decrease in its operating profit was the dwindling profits from cenobamate's global technology exports.

The company will not be able to turn around its performance before the fourth quarter, mostly due to the delay, of a couple months, before income from U.S. sales and royalties are factored in.

The SK affiliate plans to achieve U.S. cenobamate sales of up to 300 billion won this year. Incomes from other drugs will come to at least 60 billion won.

The epilepsy drug will be released in eight more European countries, pushing up the total to 23 there.

Earlier, SK biopharm said that it aims to become a global healthcare firm, as propelled by key growth strategies, including accelerating growth of cenobamate in the U.S. and expanding its presence on the global stage and innovation of its research and development (R&D) platforms.

Korea Investment & Securities report said the share price of SK biopharmaceuticals will gradually soar to 105,000 won, on the growth outlook in the fourth quarter.

“The recent poor performance will see a recovery throughout 2032,” it said. Its share price closed at 68,200 won, up 2.87 percent from the previous day.