Major South Korean pharmaceutical companies are ramping up their research and development (R&D) investments in the first half of this year, aiming to accelerate new drug development and secure future growth drivers.
According to the semi-annual reports released on the 23rd, the top five domestic pharmaceutical firms—Yuhan Corporation, Chong Kun Dang, Hanmi Pharmaceutical, GC Green Cross, and Daewoong Pharmaceutical—invested around 100 billion won in R&D during the first half of the year. Some companies reported increases in R&D spending of up to 36.6% compared to the same period last year.
Yuhan Corporation allocated 10.5% of its consolidated revenue of 1.1662 trillion won, or 122.2 billion won, to R&D, marking a 13.8% increase from the previous year. The company plans to invest about 10% of its annual revenue to enhance its R&D capabilities and expand its pipeline, focusing on global innovative drug development through open innovation and strengthened international partnerships.
Chong Kun Dang increased its R&D investment to 113.5 billion won, a 36.6% rise compared to the same period last year, which represents 12.3% of its first-half revenue of 926.2 billion won. The company attributed this increase to higher costs for contract research and clinical trials.
Hanmi Pharmaceutical invested 14.6% of its first-half revenue of 860.2 billion won, or 125.5 billion won, in R&D, an 18.2% increase from the previous year. The company consistently allocates 13% to 15% of its annual revenue to R&D, focusing on areas with high unmet medical needs, such as obesity, metabolic diseases, cancer, and rare diseases. With growing expectations for its 44th domestic new drug, Hanmi is preparing to commercialize its GLP-1 obesity drug, 'Epe,' developed under the 'H.O.P (Hanmi Obesity Pipeline)' project, at its Pyeongtaek bio plant.
GC Green Cross invested 859 billion won in R&D, which is 10.0% of its first-half revenue of 856.7 billion won. The company continues to invest based on improved profitability from its blood products, 'Aliglo,' and liquidity secured from the sale of Curevo. It plans to maintain its annual R&D spending at around 9.5% to 10% of revenue. Daewoong Pharmaceutical allocated 15.7% of its first-half revenue of 735.9 billion won, or 115.7 billion won, to R&D, reflecting an 8.5% increase from the previous year.
* This article has been translated by AI.
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