Medytox Reports Sales Increase and Operating Profit Decline in Third Quarter
Medytox, a leading biopharmaceutical company, announced its financial results for the third quarter of 2023, revealing a rise in sales but a significant drop in operating profit. The company reported provisional consolidated sales of 58.7 billion won, showing a 10% increase compared to the same period last year. However, operating profit plummeted by 75.4% to 3.6 billion won.
Impact of Litigation Costs
The surge in litigation costs impacted Medytox’s financial performance in the third quarter. The company incurred additional expenses related to delays in the timeline of the pending US ITC lawsuit with its competitors, contributing to the decline in operating profit and net profit. Furthermore, various costs increased both before and after the first trial ruling in several administrative lawsuits in Korea.
Net Loss and Future Outlook
During the third quarter, Medytox recorded a net loss of 2.2 billion won, marking a deficit compared to the same period the previous year. Despite these challenges, the company remains optimistic about its future prospects. Medytox anticipates setting a new record for its highest annual sales this year, driven by the strong performance of its botulinum toxin product, Coretox.
Upcoming Product Launches
Joo Hee-seok, Vice President of Medytox, expressed confidence in the company’s ability to overcome temporary cost increases and normalize its profit in the near future. He highlighted the upcoming launch of ‘Newlux’, a next-generation toxin formulation set to disrupt the domestic market, as well as the launch of liquid toxin. Additionally, the US BLA application for the ‘MT10109L’ formulation is imminent, signaling significant growth opportunities for Medytox.
Despite the challenges faced in the third quarter, Medytox remains focused on innovation and expansion, positioning itself for continued success in a competitive global market.
Reporter: Jang Eun-pa
[비즈니스포스트] Medytox sales increased in the third quarter due to increased litigation costs, but operating profit fell significantly.
Medytox announced on the 8th that it was provisionally calculated to have generated sales of 58.7 billion won and operating profit of 3.6 billion won on a consolidated basis in the third quarter of 2023. Compared to the third quarter of 2022, sales increased by 10%, while operating profit fell by 75.4%.
▲ Medytox (pictured) increased sales in the third quarter, but operating profit fell due to the outcome of the lawsuit.
During the same period, it recorded a net loss of 2.2 billion won, turning into a deficit compared to a year ago.
Medytox said, “We paid a portion of the additional costs incurred due to delays in the timeline of the pending US ITC lawsuit with our competitors.” In addition, as various costs increased before and after the first trial ruling in several administrative lawsuits increased in Korea, operating profit and net profit decreased “It decreased compared to the same period last year,” he explained.
However, Medytox is expected to set a new record for its highest annual sales this year thanks to strong sales of Coretox, a botulinum toxin product.
Joo Hee-seok, Vice President of Medytox, said, “As sales growth in key areas remains stable, the decrease in profit due to temporary cost increases will be normalized in the near future.” He added, “There is the launch of ‘Newlux’, a next generation toxin formulation that will shake up the domestic market, and the launch of liquid toxin. “As the US BLA application for the ‘MT10109L’ formulation is imminent, we will take a leap forward with full preparation,” he said. Reporter Jang Eun-pa
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