대한뉴팜

Sustained Growth in the First Half of 2014 - Sales up 20.4% and operating profit up 39.8% year-on-year- Rapid improvement of financial structure- Expansion and strengthening of the pharmaceutical local and wholesale divisions- Completion of bio media plant construction Daehan New Pharm’s growth momentum continued strongly into the first quarter of 2014. The company recorded total first-quarter sales of 15.67 billion KRW, representing a 20.4% increase compared to the same period last year. Operating profit reached 1.65 billion KRW, up 39.8%, and ordinary profit rose 83.7% to 1.12 billion KRW, demonstrating robust growth and profitability. By focusing on its core business areas and pursuing profit- and cash flow-centered management, Daehan New Pharm has enhanced business structure quality and growth sustainability. With shorter receivable turnover periods and reduced borrowings, its financial structure continues to improve rapidly. The company’s growth is also being propelled by strengthened leadership in the wellness and beauty sector through differentiated obesity solutions, alongside innovation in distribution structures managing hospitals and clinics directly to secure customer assets and reinforce its distribution network. To further strengthen its distribution network for sustainable growth, Daehan New Pharm expanded and reorganized its pharmaceutical local and wholesale divisions into independent business units as of March 1. The local division, focused on wellness products, is building relationships with hospitals and clinics, positioning the company as a leading player in this segment. The wholesale division aims to generate synergy with the local division by developing wholesale-exclusive products and nurturing key distributors, evolving into a "Company in Company" model within Daehan New Pharm. In addition, Daehan New Pharm has completed construction of its bio media plant, establishing a full-scale production system. Test production will be finalized in the second quarter of 2014, after which the company plans to supply customized bio media to clients. Moving forward, Daehan New Pharm will focus on fostering core media and bioprocess products—its next-generation growth engines—laying the foundation for advancement into a leading small-to-mid-sized global biotech company.

Remarkable Growth in 2013 - Sales up 18.1% and operating profit up 72.6% year-on-year- Record-breaking quarterly results since 2012- Differentiated obesity solutions, strengthened distribution network and customer loyalty, and talent-driven management as key growth drivers Daehan New Pharm achieved notable results in 2013. Despite a rapidly changing pharmaceutical environment, including continuous drug price cuts and tighter distribution regulations, the company recorded total sales of 56.7 billion KRW, up 18.1% from the previous year, and operating profit of 5.96 billion KRW, a 72.6% increase. This achievement reflects Daehan New Pharm’s consistent record-setting growth each quarter since 2012. The main growth engines were strategic innovation initiatives that reinforced leadership in the wellness and beauty solutions sector, particularly through differentiated obesity management solutions. The company also strengthened its distribution network by directly managing hospitals and clinics, securing valuable customer assets, and enhancing brand loyalty. Key drivers of competitiveness included the successful market response to newly launched, pioneering products and the focused development of strategic items. Furthermore, the company embedded talent-centered management as part of its corporate DNA, fostering and developing core personnel to strengthen creative sales capabilities. The sharp rise in operating profit resulted from both top-line growth and cost optimization through a well-structured product portfolio, in addition to improved per-capita productivity. Moving forward, Daehan New Pharm will continue pursuing strategic innovation that creates new value and differentiation, accelerate creative sales activities that enhance customer loyalty, and expand talent-focused management to drive sustainable growth.

Sustained Growth in the Third Quarter of 2013 - Sales up 18.3% and operating profit up 27.8% year-on-year- Continuous quarterly improvement, with Q3 sales up 12.7% and operating profit up 27.0% compared to the previous quarter- Brand marketing efforts strengthening market recognition Daehan New Pharm’s growth continued into the third quarter of 2013. Despite a challenging business environment marked by stringent regulations and intense competition, the company’s pharmaceutical division has steadily improved both growth and profitability month by month. Through quality-focused, profit- and collection-centered management, the company achieved solid growth of around 20%, while enhanced internal financing capacity contributed to greater financial stability. In the third quarter, Daehan New Pharm recorded cumulative sales of 41.74 billion KRW, up 18.3% year-on-year, and operating profit of 4.09 billion KRW, a 27.8% increase. Ordinary profit turned to a surplus of 1.31 billion KRW from a 706 million KRW loss in the same period last year. Since the third quarter of 2011, the company has posted steady quarter-to-quarter growth, with Q3 2013 sales rising 12.7% and operating profit jumping 27.0% compared to the previous year’s same period. The company is also strengthening its market presence through various seminars and co-creation research activities with key doctors on differentiated wellness and beauty solutions, building stronger relationships with medical professionals and enhancing brand image. Customer response to its wellness beauty solution products, Luthione Injection and Cindella Injection, remains strong, while tangible results from its “Customer Value–Centered Sales Innovation Program” are becoming evident. This upward performance trend is expected to continue through the fourth quarter and beyond, providing a solid foundation for Daehan New Pharm to advance as a leading small but strong enterprise.

Daehan New Pharm Co., Ltd. – Continuous Improvement in Business Performance - Sales up 21.6% and operating profit up 27.4% year-on-year- Continuous quarterly growth: Q2 sales up 8.9% and operating profit up 18.3% compared to Q1- Overseas export target for 2013: USD 10 million- Successful drilling and testing in the BNG mining block Daehan New Pharm continues its strong progress despite the challenging environment in the pharmaceutical industry. Since 2011, the company has been implementing its START-UP Project, embodying the spirit of a “second foundation” to strengthen organizational fundamentals and business competitiveness, with the goal of advancing into a robust mid-sized enterprise. The collective efforts of executives and employees have now started to yield visible business outcomes, which are reflected in the company’s financial results. By focusing on core businesses and maintaining profit-and cash flow-oriented management, Daehan New Pharm has enhanced its business structure and the quality of its growth. Shorter receivable turnover periods and reduced borrowings have also driven rapid improvement in the financial structure. In the first half of 2013, despite unfavorable market conditions following nationwide drug price cuts introduced in April 2012, the company achieved sales of 27.2 billion KRW, up 21.6% from the same period of the previous year. Operating profit rose 27.4% to 2.57 billion KRW, and ordinary profit turned from a 747 million KRW deficit to a 1.13 billion KRW surplus. Sales have been growing steadily each quarter since Q3 2011. In Q2 2013, sales reached 14.18 billion KRW, an 8.9% increase over Q1, while operating profit rose by 18.4% to 1.39 billion KRW. The company’s core growth drivers include strategic innovation focusing on differentiated obesity solutions, strengthening wellness market leadership, and innovating distribution by directly managing hospitals and clinics while building customer asset value to expand its network. Daehan New Pharm continues to secure talented personnel capable of executing these strategies with passion and expertise, enhancing organizational capability and boosting productivity and key competencies. In addition, through strategic overseas market expansion built on specialization, focus, and globalization, the company is achieving both growth capacity and global standard levels of management performance. Daehan New Pharm has also established a product pipeline targeting niche markets with unique “The Only Product” solutions, several of which became hit products in the first half of the year. The company has further accelerated market penetration by building a database of hospitals and clinics to strengthen customized sales and approach high-prescription doctors more efficiently. The company’s overseas resource development investment business also made significant progress in the first half of 2013. After delays in exploration and development activities last year, active drilling and testing resumed in the BNG block. Successful operations have been conducted at wells No. 54, 143, and 806. When the deep well drilling (to a depth of 4,700 meters) is completed in the second half, the recoverable reserves in the BNG contract area are expected to increase. These positive performance trends are expected to continue into the second half of the year. With an emphasis on the early success of its bio business and focused development of core products, Daehan New Pharm aims to strengthen its growth engines and solidify its foundation as a leading small but strong enterprise.

Summary of First Quarter 2013 Performance and Business Outlook - First-quarter sales up 21.6% year-on-year- Continued drilling success, currently producing approximately 1,500 barrels per day- Expansion of product portfolio in bioprocess and research-use markets Daehan New Pharm achieved first-quarter sales of 13.02 billion KRW, marking a 21.6% increase compared to the same period last year, despite an overall challenging environment in the pharmaceutical industry following the April 2012 national drug price cuts. Considering that the same quarter last year was before the price reduction policy, the company’s effective growth rate is estimated to be around 30%. Since the third quarter of 2011, sales have shown continuous quarterly growth. Operating profit increased 10.3% to 1.18 billion KRW, while ordinary profit surged 146.2% to 608 million KRW. The company’s key growth engine lies in strategic innovation—focusing on differentiated obesity solutions as a core business, improving distribution by directly managing hospitals and clinics, and strengthening its network through customer asset-oriented strategies. Daehan New Pharm continues to secure talented professionals to execute these strategies with excellence, reinforce organizational capabilities, and accelerate the cultivation of productivity and core competencies. Furthermore, through strategic overseas expansion based on specialization, focus, and globalization, the company is achieving both growth and globally standardized management practices. In the resource development sector, continuous drilling success has been reported in the Galaz and BNG contract areas since late 2012. Current daily oil production stands at approximately 1,500 barrels, with a year-end target of 2,000 barrels per day. Preparations are also underway for a 4,700-meter drilling project in the BNG area in the second quarter. In the bio business, Daehan New Pharm has completed partnership agreements to expand its product lineup beyond cell culture media and Protein A to include seven additional products: four Ion Exchange Chromatography Resins and three Hydrophobic Interaction Chromatography Resins used in purification processes. The company is currently conducting market research in preparation for multiple new product launches. Daehan New Pharm expects its strong performance trend to continue beyond the second quarter. By focusing on successful drilling operations, increased crude oil production, and early success in its bio business through core product development, the company aims to strengthen its growth engines and solidify its position as a leading mid-sized enterprise.

Daehan New Pharm Co., Ltd. – Emerging as a Hidden Powerhouse in Pharmaceutical Exports Achieving 10 billion KRW in finished pharmaceutical exports to over 30 countries worldwide through continuous export-expansion strategies - High export ratio: 21.5% of total sales- Continued growth in Russia and CIS markets- Over 10 additional new products under registration in Cuba and Latin America In 2012, Daehan New Pharm stood out among mid-sized pharmaceutical companies in Korea by achieving an export-to-sales ratio of 21.5%. Beginning with its first exports to Vietnam and other Southeast Asian markets in 1999, the company received the “5 Million Dollar Export Award” in 2007 and went on to reach 10 billion KRW in exports in 2012. This figure represents a 44% year-on-year increase and includes finished pharmaceutical products—such as anti-obesity lines—exported to over 30 countries including Russia and CIS nations, Vietnam, Pakistan, and Cuba. Riding this strong export momentum, Daehan New Pharm is positioning itself to proactively adapt to shifting market environments such as drug price reductions and new FTA policies. The company’s rapid export growth stems from a strategic commitment of more than a decade to strengthening its global export capabilities. Expanding into overseas markets has driven internal advancements—such as passing rigorous international audits, improving production processes, and achieving manufacturing standardization—while externally contributing to Korea’s national economic interests. Daehan New Pharm’s export markets are divided into three major regions: CIS, Southeast Asia, and Latin America. First, exports to Russia and CIS countries, including emerging markets, continue to grow steadily. In 2012 alone, Daehan New Pharm achieved 1.5 million USD in exports from a single product line. Through close collaboration with Russian partners, the company is working to expand this region into a primary export market targeting over 5 million USD annually. Second, in Vietnam, one of Korea’s major finished pharmaceutical export destinations, Daehan New Pharm accounted for over 5% of Korea’s total export volume in 2009 with performance exceeding 3 million USD. The company is now optimizing its product portfolio with a focus on profitability and sustainability. Third, Daehan New Pharm holds a unique position in the Cuban market, being one of the few Korean companies exporting finished pharmaceuticals there. In addition to four currently registered products generating annual sales of USD 500,000–600,000, the company is in the process of registering more than ten new items across Cuba and Latin America. Upon completion, annual export revenue from these regions is expected to exceed USD 1 million. The know-how and international competitiveness built through human pharmaceuticals are also fueling export expansion in the veterinary medicine sector. Initially limited to markets such as Ethiopia and Japan, the company began expanding into Southeast and South Asia in 2009 and has recently entered new markets by supplying feed additives to Iraq and Taiwan. With its core principles of focus, specialization, and globalization, Daehan New Pharm continues to expand its global network based on the proven quality, brand recognition, and extensive export expertise acknowledged worldwide. The company aims to solidify its position as a competitive global mid-sized enterprise by targeting niche markets, developing export-oriented strategic products, and pursuing profitability-driven growth.

Hosted the Seoul National University Hospital Biomedical Research Institute seminar

Launch of New Products Twofull-A and Karumen Plus Recently, Daehan New Pharm launched two new pellet-type products effective in cattle management: Twofull-A, which improves weight gain and suppresses estrus, and Karumen Plus, which enhances feed efficiency and increases milk production. Twofull-A, an approved veterinary drug, uses melengestrol, a beef growth-promoting hormone approved by the U.S. FDA. It stimulates protein and muscle development in heifers, promoting growth and finishing while improving feed efficiency. When administered to beef cattle, it enables earlier shipment (by 10–30 days), improves carcass grades for higher profitability, and suppresses estrus in females to prevent unwanted breeding, thereby enhancing productivity. Karumen Plus, also an approved veterinary drug, contains monensin as its main ingredient. It boosts growth and weight gain in beef cattle, prevents coccidiosis, and improves milk yield in dairy cows. Monensin alters rumen microbiota to increase volatile fatty acids that efficiently provide energy, while suppressing harmful microorganisms that produce lactic acid and methane. It also helps prevent acidosis, bloat, ketosis, and reduces the incidence of liver abscesses. Both Twofull-A and Karumen Plus are produced in pellet form. They are the first patented formulations of their kind: melengestrol pellet (Patent Application No. 10-2013-00008604) and monensin pellet additive (Patent Application No. 10-2013-00008605). Compared to powders, pellets are easier to administer, offer better palatability, and allow uniform individual dosing, increasing effectiveness. Additionally, the newly patented low-temperature pellet manufacturing process prevents potency loss during molding, maintaining the ingredients’ efficacy. By launching Twofull-A and Karumen Plus, both of which significantly enhance feed efficiency and weight gain in beef cattle, the company aims to support livestock farmers facing rising feed costs and production expenses due to global grain price increases. In addition, the company has also launched Lactorin Acid, an antibiotic alternative derived from fermented fish sauce, which has received positive feedback from farmers.(For inquiries: 02-3415-7853)

Development of the Nation’s First Natural Tick Control Products for Beekeeping and Household Use Daehan New Pharm Co., Ltd. has developed and launched a natural tick control product to protect beekeeping farms from mites and parasitic infestations such as Varroa destructor and Tropilaelaps clareae.Unlike conventional tick control agents that primarily use pesticide-based formulations and can cause environmental pollution, many advanced countries, including those in Europe and the United States, have shifted toward developing and promoting natural alternatives to address the issue of pesticide resistance. Daehan New Pharm has successfully developed and commercialized the nation’s first natural formulation using citric acid and propolis, gaining positive feedback from domestic beekeepers. In addition, the company plans to launch a household spray formulation made with citric acid and propolis to help prevent the spread of phlebovirus infections transmitted by ticks—an issue recently raised as a major public health concern in Japan. Designed with human safety in mind, the product will have minimal impact on humans compared to conventional pesticide-based formulations, while leveraging the company’s proven technology for effective mite and tick elimination. The product is also expected to help reduce tick-related allergic reactions. Meanwhile, Daehan New Pharm has also begun collaborative research with Korea University on a high-value protein source, chlorella, using carbon dioxide reduction technology. Furthermore, following the nationwide ban on antibiotic use in feed implemented in July 2011, the company is developing eco-friendly antibiotic alternatives, which are expected to contribute to import substitution exceeding 100 billion won in feed protein sources and substitute feed additives.