Pharma Industry’s 2024 Earnings: Revenue Grow, Profits Decline

As preliminary earnings results for 2024 emerge, Yuhan Corporation and Boryung reported significant revenue growth, while ChongKunDang, JW Pharmaceutical, and Handok showed stagnation. A common industry trend was a decline in operating profit and net income despite rising revenues.

An analysis of 13 pharmaceutical companies with revenue exceeding $347 million and a 30% or more increase in key financial metrics compared to the previous year highlights these patterns.

Yuhan Corporation became the first synthetic drug-based company to surpass $1.4 billion in revenue, securing the top spot. GC Biopharma reclaimed second place with $1.2 billion, up from $1.1 billion last year. ChongKunDang, which ranked second in 2023, dropped to third with $1.09 billion. Hanmi Pharmaceutical followed with $1.04 billion, while Daewoong Pharmaceutical ranked fifth at $877 million.

Boryung posted $705 million, surpassing its initial target of achieving this milestone by 2026. HK inno.N followed with $622 million, while JW Pharmaceutical recorded $499 million, down from $519 million the previous year. Dong-A ST reported $444 million, Ildong Pharmaceutical $426 million, Daewon Pharmaceutical $415 million, Huons $409 million, and Handok $348 million.

Yuhan led year-over-year revenue growth with a $145 million increase, solidifying its top position. Boryung followed with a $109 million gain, driven by successful new product launches. Daewon Pharmaceutical benefited from increased demand in the respiratory sector, while HK inno.N and Boryung expanded their market presence with the gastroesophageal reflux treatment K-CAB.

GC Biopharma grew by $35 million, Daewoong Pharmaceutical by $28 million, and both Huons and Dong-A ST saw gains in the $20 million range. Conversely, ChongKunDang's revenue declined by $57 million, while JW Pharmaceutical and Handok saw drops of $20 million and $12 million, respectively.

ChongKunDang’s decline was linked to reduced revenue from key products, including the co-promotion sales of K-CAB. JW Pharmaceutical and Handok faced setbacks due to ongoing medical disputes in their core business areas, intravenous solutions and orphan drugs.

Despite overall revenue growth, operating profit and net income weakened across the sector. Hanmi Pharmaceutical led with an operating profit of $150 million, supported by a well-established product lineup. Daewoong Pharmaceutical ranked second with $114 million, followed by ChongKunDang, HK inno.N, and JW Pharmaceutical.

Ildong Pharmaceutical turned profitable, reporting an operating profit of $11 million—an impressive rebound from the previous year’s $37 million loss—following restructuring after the Yunovia spin-off. Daewoong Pharmaceutical's operating profit rose by $21 million, while HK inno.N and Boryung posted gains of $15 million and $1.5 million, respectively.

In contrast, ChongKunDang recorded a $102 million decline in operating profit, marking a steep drop. JW Pharmaceutical, Huons, and Handok also faced downturns. Notably, 9 out of the 13 companies analyzed saw a decline in operating profit, reflecting post-COVID growth stagnation and reduced pharmaceutical demand outside specialized fields.

This trend extended to net income. Hanmi Pharmaceutical led with $99 million, while ChongKunDang followed with $77 million, though this marked a 48% drop from the previous year.

Boryung, JW Pharmaceutical, and HK inno.N remained competitive in net income rankings, aligning with their revenue performance. However, 9 out of the 13 companies, including Handok—which continued to report losses—experienced a decline in net income compared to the previous year.