Eutilex, a Kosdaq-listed biotech firm, reported 9.5 billion won ($6.6 million) in revenue for 2024, a staggering 7,136 percent increase from the previous year. 

But the surge was driven not by drug development — its core business — but by its recently acquired IT subsidiary, which accounted for 71 percent of total revenue.

The company, known for its work in CAR-T therapies and antibody treatments, merged with INSystem, an IT firm specializing in healthcare data management, last year. The move fundamentally reshaped Eutilex’s business structure, prompting questions about its long-term strategy.

Despite IT’s dominant role in the company’s financials, Eutilex said that drug development remains its primary focus. “As we generate revenue from new drug development, we plan to increase biotech’s share, eventually surpassing IT,” a company official said. 

Approximately 30 percent of last year’s revenue—2.7 billion won—came from non-clinical contract research organization (CRO) services. 

The company is actively working to integrate artificial intelligence into biotech, leveraging INSystem’s expertise in healthcare data. “We are growing into a hybrid biotech-IT company,” the official said. “Unlike other biotech firms, we acquired an IT company to create direct synergies between AI and drug development.”

While integrating IT, Eutilex is advancing multiple drug pipelines. This year, the company plans to release interim phase 1 clinical data on EU307, a CAR-T therapy targeting GPC3-positive solid tumors, with a focus on hepatocellular carcinoma (HCC).

Additionally, Eutilex expects new revenue streams from its veterinary medicine division, with immune boosters for livestock set for commercialization later this year. It is also conducting phase 1 clinical trials for EU103, an antibody therapy targeting VSIG4.

The company anticipates further financial improvements through subsidiary growth. FortNova, a biosample analysis unit, has secured external service contracts and is expected to turn profitable by 2025.

For now, Eutilex’s biotech and IT divisions operate separately, but the company says a full integration is underway. “We are actively working on creating synergy,” the official said. “It takes time to integrate teams and technology, but ultimately, AI will be a key part of our biotech operations.”

INSystem provides enterprise solutions and system integration services to major clients, including the National Health Insurance Service (NHIS), Health Insurance Review & Assessment Service (HIRA), the Ministry of Health and Welfare, LG Chem, and LG CNS. 

The company expects continued revenue growth in this segment, with full-year earnings projected to exceed 10 billion won annually once the acquisition is fully reflected.

Yet, despite a sharp revenue increase, Eutilex remains unprofitable. The company narrowed its operating loss by 11.8 percent, recording a 26.28 billion won loss, down from 29.78 billion won the previous year. Net loss remained relatively unchanged at 28.08 billion won, compared to 28.34 billion won in 2023. 

“As a biotech firm, operating losses are inevitable due to research expenditures,” the official said. “However, we have cut unnecessary costs and focused on essential areas, moving toward financial stability.”

Eutilex shares closed at 1,963 won on Friday, up 5.09 percent from the previous trading day, with trading volume six times higher than the previous day.