Alphabiz - Chong Kun Dang’s Q3 Operating Profit Expected to Drop Over 20% Amid Margin Pressures

Photo = Chong Kun Dang Pharmaceutical Corp

[Alpha Biz= Kim Jisun] SEOUL, South Korea – October 21, 2025 – Chong Kun Dang Pharmaceutical Corp. (KRX: 185750) is expected to post more than a 20% drop in third-quarter operating profit compared to the same period last year, as weaker margins and a price reduction for its flagship osteoporosis drug weigh on performance. Analysts also project the company’s annual operating margin to fall to the 4% range, continuing its multi-year decline.


According to a report by Kiwoom Securities analyst Huh Hye-min, Chong Kun Dang’s third-quarter standalone revenue is forecast at ₩429.8 billion, up 5.2% year-on-year, while operating profit is expected to decline 22.2% to ₩19.6 billion. Both figures fall short of market consensus estimates of ₩437.3 billion in revenue and ₩20.1 billion in operating profit.


Samsung Securities provided a similar outlook, forecasting ₩423.9 billion in sales and ₩18.5 billion in operating profit for the quarter.


The company’s top-line growth is being sustained as gains from select products offset weakness in others. However, sales of Prolia—its key osteoporosis treatment—have decreased following a 20% price cut triggered by the introduction of biosimilars. Kiwoom expects Prolia’s Q3 sales to reach ₩31.8 billion, down from ₩45.0 billion in Q1 and ₩34.6 billion in Q2, with further decline anticipated in the fourth quarter.


Meanwhile, sales of growth-driving products such as Atozet (hyperlipidemia treatment), Gliatilin (cognitive enhancer), Januvia (diabetes treatment), and Fexuclue (reflux esophagitis treatment) are projected to rise, partially offsetting Prolia’s decline.


Despite the modest revenue increase, profitability continues to deteriorate. Kiwoom forecasts Chong Kun Dang’s 2024 full-year revenue at ₩1.70 trillion and operating profit at ₩71.5 billion, representing a 9.1% rise in sales but an 18.8% drop in profit year-on-year. The company’s operating margin is expected to fall from 14.6% in 2023 and 5.6% in 2024 to approximately 4.2% this year.


Looking ahead, investors are watching whether technology exports could help the company regain growth momentum. In November 2023, Chong Kun Dang signed a US$1.305 billion licensing agreement with Novartis for CKD-510, an HDAC6 inhibitor candidate for neurodegenerative diseases such as ALS and Alzheimer’s. The company received an upfront payment of US$80 million (₩106 billion). In May 2024, Novartis submitted a Phase 2 IND application to the U.S. FDA, though specific indications have not yet been disclosed.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)