[Apha Biz=(Chicago) Reporter Paul Lee] JW Pharmaceutical is continuing its steep earnings improvement.

This is due to strong sales of high-margin items represented by the Liparo Family, a family of hyperlipidemia drugs.

According to the securities industry on the 7th, JW Pharmaceutical is expected to record sales of 186.8 billion won and operating profit of 17.7 billion won in the second quarter. It is an increase of 13.2% and 88.3% year-on-year. It continues to grow following the first quarter (sales of 173.4 billion won and operating profit of 20.3 billion won), which saw sales and operating profit increase 10.9% and 52.6% year-on-year.

The background of JW Pharmaceutical's positive outlook is the performance contribution of high-margin items that have been in full swing since last year. The company's core sales items are sap and medicine.

JW Pharmaceutical has focused on developing its own new drug since the 2000s. Although it is not a domestic new drug directly led by the discovery of candidate materials, the goal is to increase profitability with a new drug strategy that introduces technology from abroad to obtain last-minute development and permission on its own.

A representative item is Livalo, which is currently the company's sales hub. JW Pharmaceutical Co., Ltd. launched Livalo jointly developed by Kowa and Nissan Chemical in 2003 and launched it in 2005 after clinical trials in Korea. It then expanded its product line by launching the hyperlipidemia and high blood pressure complex "LivaloV" in 2015 and the new hyperlipidemia improvement drug "Livalo zet" in 2021.

In particular, Livalo zet collected 36 billion won in sales last year, the first year of full-scale sales, and led the total sales of the Ribaro product line to surpass 100 billion won. This year, it has become a key item with sales expected to reach KRW 70 billion. The Livalo family collaborated about 17% of the company's total sales last year.

The Livalo family margin ratio rose further in 2021 when it converted its main ingredients into its own production. In particular, in line with demand for sap recovered from the COVID-19 pandemic, the company has gained speed in improving profitability as well as appearance. JW Pharmaceutical's operating profit ratio has risen from 5.1% in 2021 to 9.2% last year. On a quarterly basis, it has already entered the double-digit range in the fourth quarter of last year and is expected to make an annual operating profit ratio of more than 10% this year.

 

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