[Edaily Reporter NA EUN-KYUNG ] ISU Abxis Co., Ltd.(086890)reported cumulative revenue of 33.7 billion won through the third quarter of this year. Although revenue recognition for some overseas pharmaceutical shipments was deferred to the fourth quarter, the company expects no significant changes to its annual business trajectory.

In a preliminary earnings announcement on the 5th, ISU Abxis Co., Ltd. reported third-quarter revenue of 9.4 billion won and an operating loss of 6.3 billion won. This was due to adjustments in the shipping schedules for some overseas shipments and the inclusion of one-time inventory-related expenses.

ISU Abxis Co., Ltd. explained that the timing of revenue recognition on a quarterly basis may vary depending on country-specific order placement and shipping schedules during the overseas pharmaceutical supply process. Overseas revenue not reflected in the third-quarter results is expected to be recognized in the fourth quarter. The third-quarter results also included technology revenue related to “ISU106” under a technology transfer agreement with Russia.

ISU Abxis Co., Ltd. operates its domestic and international pharmaceutical business with a focus on treatments for rare diseases. Its major commercialized products include “Absertin,” a treatment for Gaucher disease; “Pavagal,” a treatment for Fabry disease; and “Clotinin,” an anti-thrombotic antibody therapy.

In particular, overseas markets serve as the company’s primary revenue base. Of the 24.4 billion won in revenue for the first half of this year, exports totaled approximately 12.6 billion won, accounting for 51.8% of the total. The company’s financial performance is underpinned by overseas sales of flagship products such as Absertin and Fabagal, as well as revenue from technology transfers.

The operating results reflected inventory losses incurred during trial production to validate the Fabagal manufacturing process. An operating loss was recorded as inventory write-off losses and inventory valuation losses were recognized as expenses in the third quarter. The company explained that these costs represent one-time factors distinct from those that recur in the normal course of product sales.

ISU Abxis Co., Ltd. plans to expand the overseas supply regions for its commercialized products while continuing research and development on new antibody drugs. The strategy is to secure a revenue base in its existing rare disease treatment business and establish mid- to long-term growth engines through new pipelines and platform technologies.

An official from ISU Abxis Co., Ltd. stated, “Considering the timing of quarterly revenue recognition and the impact of one-time expenses, it is necessary to examine the business trend on an annual basis rather than focusing on a single quarter,” adding, “Since deferred revenue is expected to be reflected in the fourth quarter, we do not anticipate any significant changes in the annual business trend.”

The spokesperson added, “We plan to strengthen our stable revenue base by continuously expanding the overseas markets for our commercialized products, while also focusing our capabilities on R&D for new pipeline candidates to secure mid- to long-term growth drivers.”