Company
Business
Stem Cell Therapy
Organoid
CDMO Business
PR Resource Center
Kangstem Biotech strives to develop an innovative new drug for patients suffering from rare and incurable diseases.
First Half Year's Performance in Year 24
13
2024.08
Kangstem Biotech has rebounded due to the sale of a stake in a subsidiary and increased revenue from its CDMO business.
Kangstem Biotech has rebounded due to the sale of a stake in a subsidiary and increased revenue from its CDMO business. As a result, the company reported a positive consolidated net profit for the first half of 2024.
Kangstem Biotech's separate and consolidated revenues for the half-year were the same at KRW 3.56 billion due to the sale of a subsidiary, while separate revenues increased by 19.2% year-on-year. Net profit on a consolidated basis was KRW 470 million, marking the company's first profit.
As a new drug research and development company, Kangstem Biotech had previously recorded losses due to development expenses, such as clinical trials. However, the company improved by 104% year-on-year (from a loss of KRW 12 billion) due to a gain on the disposal of the subsidiary.
Notably, KOSDAQ-listed companies must be managed if their loss from continuing operations before income taxes exceeds 50% in two of the last three years. Kangstem Biotech, however, achieved a profit before income taxes of KRW 1.2 billion in the first half of the year, reflecting the gain from the subsidiary sale and improvements in its business structure. Even taking into account the R&D expenses in the second half of the year, it is highly unlikely that this rule will be applied this year.
Revenues from the CDMO business also grew significantly, contributing to the increase in revenue in the second quarter. The four ongoing projects are on track, with each milestone completed, resulting in KRW 1.57 billion in revenue. Full-year revenue is expected to exceed $2 billion as customers enter clinical trials.
We look forward to building on our progress and achieving additional business successes in the second half of the year, continuing to expand our external presence while strengthening our internal performance.