Twenty-seven “innovative” drugmakers invested 588.2 billion won ($517.7 million) in research and development in the first six months of this year, according to their reports on half-year performances analyzed by Korea Biomedical Review. The R&D investment accounted for 11.8 percent of their combined sales.
R&D costs were based on expenses in the business content of their semi-annual reports and sales were based on the statements of comprehensive income instead of consolidated financial statements. If they announce results based on consolidated financial statements, the figures could be different from this paper’s analysis.
The analysis excluded unlisted pharmaceutical companies, such as Kuhnil Pharm건일제약, Taejoon Pharm태준제약, Hanlim Pharmaceutical한림제약 and CJ HealthcareCJ헬스케어 that don’t need to submit the semiannual report. Life Science division of LG Chem LG화학, SK Chemical SK케미칼, and Kolmar Korea한국콜마, which did not sever drug-making unit from other business, and some foreign drugmakers, such as Sanofi-Aventis Korea 사노피아벤티스코리아 and Otsuka Korea한국오츠카, were not included, either.
Also excluded were bio ventures, including Medytox메디톡스, Viromed바이로메드, Bcworld Pharm비씨월드제약, Bioneer바이오니아, Genexine 제넥신, Corestem코아스템, Crystal Genomics크리스탈지노믹스, and Tego Science테고사이언스.
|R&D cost was based on expenses in the business content of the semiannual report, and sales were based on the statement of comprehensive income.|
Isu Abxis이수앱지스 made the largest investment in R&D regarding its share against sales in the first half of this year among innovative drugmakers. Its R&D investment of 3 billion won accounted for 31.3 percent of its sales of 9.7 billion won, in the first half year.
Celltrion셀트리온, Hanmi Pharmaceutical한미약품, and Bukwang Pharmaceutical부광약품 invested more than 20 percent of their sales in R&D.
Celltrion invested 107 billion in R&D, 27.3 percent of its sales of 392 billion won. Hanmi Pharmaceutical spent 79.4 billion won, 22.7 percent of 349.9 billion won in sales. Bukwang Pharmaceutical invested 17 billion won, 22 percent of 72.8 billion won.
Pharmicell파미셀 invested 1.9 billion won, 15.9 percent of 12.4 billion won, and Dong-a ST동아ST invested 42 billion won, 15.8 percent of 265 billion won.
Korea United Pharm한국유나이티드제약 invested 13.5 billion won, 14 percent of 96.8 billion won in sales. Daewoong Pharmaceutical대웅제약 invested 54.3 billion won, 12.7 percent of 427.7 billion won, and Hanall Biopharm한올바이오파마 spent 5 billion won, 12.6 percent of 39.7 billion won in sales.
Green Cross녹십자 invested 55.9 billion won, 10.9 percent of its sales of 513.4 billion won, Daehwa Pharmaceutical대화제약 invested 4.3 billion won, 10.3 percent of 41.7 billion won, and Hyundai Pharm현대약품 invested 6.7 billion won, 10.3 percent of its sales of 65.9 billion won.
Small-and medium-sized pharmaceutical companies’ R&D investment mostly remained in the single-digit range of their turnover.
Huons휴온스 and JW Pharmaceutical중외제약 invested 7.6 percent of their sales in R&D, followed by Samjin Pharm삼진제약 with 7.5 percent, Daewon Pharm대원제약 with 7.3 percent, and Il-Yang Pharm일양약품, with 7.2 percent.
Some drugmakers’ ratios of R&D spending against sales were less than satisfactory.
Included in this group were Yuhan Corp.유한양행, which recorded biggest sales amount in the first half year. Yuhan spent 47.8 billion won on R&D, 6.8 percent of 701.9 billion won in sales.
Boryung Pharm 보령제약 and Handok한독 that recorded more than 200 billion won in sales in the first half of this year spent 6.9 percent and 4.9 percent of their sales on R&D, respectively.
The material producer ST Pharm에스티팜 invested 4.2 percent in R&D, 4.2 percent of sales, and GemVax & KAEL젬벡스앤카엘 spent only 1.1 percent of its sales on R&D.
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