HanAll Biopharma, a subsidiary of Daewoong Pharmaceutical, reported a sharp decline in operating profit for 2024 despite modest revenue growth, on Wednesday. 

The company, however, said it remains committed to expanding its research and development (R&D) efforts to secure long-term growth.

HanAll’s 2024 consolidated revenue reached 138.9 billion won ($96.6 million), a 3 percent year-on-year increase compared to the previous year. Operating profit, however, dropped 89.6 percent to 230 million won, and the company recorded a net loss of 1.9 billion won, reversing from a profit the previous year.

“Despite stable sales growth of key products and achieving an operating profit, the company posted a net loss due to foreign exchange losses and a decline in financial income compared to the previous year,” a HanAll official said. 

The company added that the absence of licensing fees from milestone achievements, combined with increased costs from clinical programs and open collaboration activities, significantly impacted profitability.

In the fourth quarter, the company showed some recovery, posting an operating profit of 2.7 billion won, compared to a 4.3 billion won operating loss during the same period in the third quarter. Quarterly revenue reached 36.4 billion won, and net income stood at 1.5 billion won.

HanAll said it is advancing several drug development initiatives to strengthen its R&D competitiveness. Its second anti-FcRn antibody, HL161ANS, entered clinical trials for Graves’ disease, while the Parkinson’s disease treatment HL192 demonstrated positive phase 1 clinical trial results. Another key project, HL036 (tanfanercept), a dry eye treatment co-developed with Daewoong Pharmaceutical, progressed to a phase 3 clinical trial, with topline results expected by 2026.

The company is also preparing to release several clinical trial results and initiate new trials in 2025. Key developments include phase 3 results for batoclimab in treating myasthenia gravis and phase 2b results for inflammatory demyelinating polyneuropathy, both expected in the first quarter of the year.

“Despite challenging conditions, 2024 was a year of achievement as we sustained R&D investments while revitalizing domestic operations to return to profitability,” said Jeong Seung-won, CEO of HanAll Biopharma. “This year, we expect to see the fruition of these R&D efforts."