SK Biopharm returns to black in Q1, Seegene’s income nearly five-fold from yr ago

South Korea’s SK Biopharmaceuticals Co. successfully swung to the black in the first quarter with expanded sales of its anti-epileptic drug cenobamate in the United States and milestone payment from Europe.

In its regulatory filing on Wednesday, SK Biopharmaceuticals said its consolidated operating profit reached 75.9 billion won ($67.5 million) in the first three months, reversing from a loss of 53.5 billion won a quarter ago and 65.1 billion won a year earlier.

Its bottom line turned to a black of 128.99 billion won from the red of 58.1 billion won three months ago and 66.6 billion won a year ago. Sales jumped more than 8.7 times on quarter and 35.6 times on year to total 140 billion won.

Shares of Kospi-listed SK Biopharmaceuticals rose 0.94 percent to close at 107,500 won in Seoul trading on Wednesday.

SK Biopharmaceuticals cashed out of European partner Arvelle Therapeutics by selling its 12 percent stake to Italy’s Angelini Pharma in January, adding 50.4 billion won in non-operating income.

The Korean biotech company received a milestone payment of $110 million from Angelini Pharma in addition to $13.22 million related to its stake sale, and its anti-epileptic drug cenobamate sales increased to 11.6 billion won in the U.S. for the first three months.

The company now expects accelerated revenue growth in the coming quarters amid a business recovery with the arrival of virus vaccines.

SK Biopharmaceuticals’ cenobamate will be launched under the brand name of Ontozry in 41 European countries from the third quarter of this year.

Separately, Kosdaq-listed test kit maker Seegene Inc. announced on the same day its consolidated operating profit reached 193.93 billion won in the quarter ended March, down 24.7 percent on quarter but up 387.8 percent on year.

Net profit declined 11.4 percent from a quarter ago but soared 388 percent against a year earlier to 164.25 billion won, while sales were down 20.4 percent on quarter but added 330 percent on year to total 351.75 billion won.

Earnings outlook for the second half of the year is much brighter as it has clinched a series of supply deals from European countries recently. Under the contracts, Seegene will supply 120 billion won worth Covid-19 test kits to Italy, 24.7 billion won worth to nine major hospitals in Scotland, and 25 billion won worth to Germany’s Back to School project.

Seegene shares finished 0.37 percent lower at 80,000 won.

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