PanGen posts Q1 sales of 3.4 billion won and operating profit of 700 million won

771% increase in comparative operating profit boosted by EPO exports

Huons Group’s biopharmaceutical affiliate PanGen Biotech (Pangen, CEO Jaeseung Yoon) announced Wednesday that it posted robust earnings and operating profit for the first quarter.

PanGen’s separate financial statements recorded sales of KRW 3.4 billion and an operating profit of KRW 700 million for the January-March period, reflecting year-over-year growth of -0.86% and 771%, respectively.

PanGen’s exports on Erythropoietin (EPO) biosimilar recorded 57% growth in the first quarter of this year compared to the same period last year. However, for the contract manufacturing organization (CMO) business, the company recorded comparable sales due to this year’s change in the revenue recognition period. The company’s order backlog totaled KRW 4.5 billion as of March 31^st, and continues to increase with active sales activities resulting a KRW 1.9 billion CMO contract with CHA Vaccine Institute early April.

Operating profit jumped more than seven-fold, driven by favorable foreign exchange rate conditions and a boost in the company’s overseas EPO sales.

PanGen showed significant growth over all its business areas including biologics EPO biosimilar, and contract development organization (CDO).

Sales has increased from PanGen’s core EPO business division as a result of increased exports to ASEAN countries, which include Malaysia and Philippines, and full-fledged exports to Saudi Arabia and Turkiye. The company expects continuous sales growth in the Middle East and Africa.

In CMO business, Pangen plans start CMO manufacturing for CHA Vaccine Institute in the second quarter. Equipped with a good manufacturing practice (GMP) facility, 

PanGen has been receiving not just OEM orders from Huonslab but also outside CMO orders since last year.

PanGen provides contract development and manufacturing organization (CDMO) business for biopharmaceuticals and also manufactures and sells biosimilar based on its expertise in developing original cell lines and establishing processes for biopharmaceutical production.

PanGen expects to see continued growth this year on its EPO biosimilar business by increasing domestic and international sales from strengthening marketing strategies, and expand its presence in CDMO business.

CEO of PanGen, Jaeseung Yoon said, “We successfully turned profitable last year, driven by strong revenue growth. This year, we aim to bring solid performance improvements by solidifying our position as a biopharmaceutical specialized company through overseas EPO sales expansion and new CDMO orders."