대한뉴팜

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.