[Edaily Reporter NA EUN-KYUNG ] Donga ST(170900)reported third-quarter revenue of 206.5 billion won, marking the second consecutive quarter that quarterly revenue exceeded 200 billion won. Although revenue declined slightly from the previous quarter, operating profit nearly doubled, driven by growth in the prescription drug (ETC) segment and efficiency improvements in selling, general, and administrative expenses.

Donga ST announced on the 27th that it posted revenue of 206.5 billion won and operating profit of 21.4 billion won for the third quarter of this year, based on its separate financial statements. Compared to the same period last year, revenue increased by 4.1% and operating profit rose by 27.7%.

Compared to the previous quarter, revenue decreased by approximately 0.6%, from 207.8 billion won to 206.5 billion won. In contrast, operating profit increased by approximately 96.3%, from 10.9 billion won to 21.4 billion won. The operating profit margin also rose by about 5.1 percentage points, from 5.2% in the second quarter to 10.4% in the third quarter.

Quarterly revenue for this year was 187.1 billion won in the first quarter, 207.8 billion won in the second quarter, and 206.5 billion won in the third quarter. Operating profit increased over the same period to 10.8 billion won, 10.9 billion won, and 21.4 billion won, respectively. This means that while third-quarter revenue remained at the previous quarter’s level, profitability improved significantly.

Revenue growth was driven by the ETC division. Third-quarter ETC revenue totaled 155.9 billion won, a 7.3% increase compared to the same period last year. This growth was driven not only by existing flagship products—such as the growth hormone therapy “Grotropin” and the functional dyspepsia treatment “Motiriton”—but also by expanded sales of newly introduced products, including the gastroesophageal reflux disease (GERD) treatment “Zacubo” and the prostate cancer treatment “Dipereelin.”

ETC sales also rose by approximately 4.9% compared to the previous quarter’s 148.6 billion won. Donga ST is expecting an increase in prescription drug sales ahead of the domestic launch of the epilepsy treatment “Xcopri” this November.

In contrast, the overseas business segment underperformed. Third-quarter overseas sales totaled 39.2 billion won, a 3.9% decrease from the same period last year. Compared to the previous quarter’s 46.9 billion won, this represents a decline of approximately 16.4%. Weak exports of beverage products, such as Bacchus, contributed to this decline. However, the biopharmaceutical product Dabepoetin Alpha continued its growth momentum, driven by an expansion of market share in Japan.

Revenue in the digital healthcare segment reached 2.8 billion won, a 403% increase year-over-year. Sales of products such as the wearable ECG monitoring solution “HiCardi,” as well as “Doctor Eye” and “CareSense,” contributed to this growth. However, revenue was down approximately 12.5% from the previous quarter’s 3.2 billion won.

Donga ST is expanding its digital healthcare business in the second half of the year through the launch of “HiCardi M350” and an exclusive sales agreement for the artificial intelligence (AI) gait analysis solution “NeuroGate.”

Whether the company will achieve annual revenue of 800 billion won is also a matter of interest. Cumulative revenue for the first three quarters of this year totaled approximately 601.4 billion won; if the company records revenue of at least 198.6 billion won in the fourth quarter, it could surpass 800 billion won for the year.

In the new drug development sector, the company completed a global Phase 2a clinical trial for “Banogliphel (DA-1241),” a treatment for metabolic dysfunction-associated steatohepatitis (MASH) and Type 2 diabetes, through its U.S. affiliate, Metavia.

The obesity treatment “DA-1726” is currently undergoing Part 3 of its global Phase 1 clinical trial. This trial extends the treatment period from the original 16 weeks to 24 weeks to evaluate safety and tolerability at higher doses. Results from the 16-week treatment period are scheduled to be announced in the fourth quarter of this year, while results from the 24-week treatment period are expected in the first quarter of next year.

A Donga ST official stated, “Based on stable growth in the ETC division and the expansion of our digital healthcare business, we have surpassed 200 billion won in revenue for two consecutive quarters,” adding, “We will continue to pursue sustained growth by strengthening the competitiveness of our core businesses and securing new growth engines, with the goal of exceeding 800 billion won in annual revenue for the first time since the company’s founding.”