The government is expected to allow functional health foods to be packaged in small amounts this year.

Industry watchers are paying attention to whether JVM, a drug packaging subsidiary of Hanmi Science, will benefit from this and see sales increase in 2022.

JVM is likely to benefit from small packaging of health functional foods this year, a report by a securities company said.
JVM is likely to benefit from small packaging of health functional foods this year, a report by a securities company said.

According to a report by EBEST Investment & Securities released on Wednesday, JVM will have achieved 35.3 billion won ($29.6 million) revenue, and 5.3 billion won operating profit in the fourth quarter of 2021.

“As the sales of equipment grew both in Korea and overseas, the company is likely to mark a record high quarterly revenue,” the brokerage said.

The company replaced old equipment with new ones in local pharmacy channels and saw an influx of new customers in Korea, EBEST said. In overseas markets, the sales of vial packaging products were robust, and a blister product, released in 2021, started to generate revenue, which contributed to the overall sales last year, it said.

JVM’s earnings will increase in 2022 as the company will increase prices with product renewals, release a micro drug packaging system called ATDPS DEN for small pharmacies, and sell health functional foods in small packages, EBEST said.

With other countries introducing pouch-type drug dispensing and growing needs for automated drug dispensing, JVM’s exports will expand this year, the brokerage added.

Hanmi Pharmaceutical Group is raising expectations for JVM, too, because the group’s efforts to diversify its business portfolio will start to yield good results this year, industry officials said.

On Monday, JVM announced that it would go the extra miles beyond solidifying its No. 1 position in Korea's automated drug dispensing market.

“The government allows only several businesses to sell functional foods in small packages through a regulatory sandbox. But this year, the market will be fully open with a law revision,” an official at JVM said.

Consumers will be able to consult with a doctor about their health status and get various functional foods in small packages, the official went on to say.

It will also become possible to get small pouches of functional foods through delivery.

Companies in a pilot program to sell small packages of health functional foods are already using JVM’s products. The JVM official said that those seeking small packaging business are discussing with JVM for delivery.

Incorporated into Hanmi Science in 2016, JVM develops automated drug dispensing systems and software.

Hanmi Science’s other subsidiary Online Pharm is in charge of local sales of JVM, and Hanmi Pharmaceutical, overseas marketing and sales of JVM.

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