Major South Korean pharmaceutical companies expanded their research and development spending in the first half of this year, accelerating efforts to develop new drugs and secure future growth engines. The country's five largest drugmakers each spent around 100 billion won on R&D during the period, with Chong Kun Dang increasing its outlay by about 37% from a year earlier.
According to each company's semiannual report released on the 23rd, Yuhan Corporation, which posted revenue of 1.17 trillion won ($841 million) on a consolidated basis in the first half, invested 122.2 billion won ($88 million), or 10.5% of sales, in R&D. That was 13.8% more than in the same period a year earlier. In its report, Yuhan said it "concentrates roughly 10% of annual revenue on R&D spending to strengthen its R&D capabilities, the foundation of future growth, and is continuously expanding its R&D pipeline." It added that it is "working to develop globally innovative new drugs by strengthening its own research capabilities, expanding R&D cooperation through active open innovation and enhancing partnerships with overseas partners."
Chong Kun Dang invested 113.5 billion won ($82 million), or 12.3% of its 926.2 billion won in first-half revenue, in R&D, a 36.6% increase from the same period last year. A Chong Kun Dang official said R&D spending rose "as contract research and clinical trial costs increased."
Hanmi Pharmaceutical posted first-half revenue of 860.2 billion won and spent 125.5 billion won ($90 million), or 14.6%, on R&D, up 18.2% from the first half of last year. A Hanmi official said the company "has strengthened its competitiveness as an R&D-focused company by building a sustainable innovation model in areas of high unmet need, such as obesity and metabolic disease, cancer and rare diseases," adding that it "has invested 13% to 15% of annual revenue in R&D each year and plans to maintain this investment stance going forward."
Hanmi said it has been fully operating H.O.P (Hanmi Obesity Pipeline) since 2023, a new-drug development project spanning quantitative and qualitative obesity treatment, improved medication convenience and post-weight-loss management. It is also preparing to commercialize "Efe," a GLP-1 obesity drug that serves as the project's front-runner, within this year.
GC Biopharma spent 85.9 billion won, or 10.0% of its 856.7 billion won in revenue, on R&D, up 3.8% from a year earlier. A company official said improved profitability of Aliglo and the sale of Curevo also helped secure liquidity, boosting R&D investment, adding that "annual R&D spending is planned to stay at around 9.5% to 10% of yearly revenue." Daewoong Pharmaceutical posted first-half revenue of 735.9 billion won on a non-consolidated basis and invested 115.7 billion won, or 15.7%, in R&D, an 8.5% increase from a year earlier.
