Caregen Reports Second Quarter 2021 Financial Results

Caregen (CEO YJ Chung) reported financial results for the second quarter ended June 30, 2021.

Total consolidated revenue for the second quarter were 15.2 billion won, operating profit 8.1 billion won, and net income 6.6 billion won. The operating margin was 52.9%, recording solid sales growth and high profit margin despite the negative impact from the re-spread of Covid-19.

Revenue rose 8.9% year-on-year, driven by strong growth of raw material revenue. Operating profit increased by 10.8% and net income decreased by 8.4%. Net income decreased due to a base effect from non-operating other income in the same period of the previous year and non-operating financial income in the previous quarter.

Health functional food business and pharmaceutical business are cruising as scheduled. 'Deglusterol', a health functional food with blood sugar control function, is expected to be approved within the third quarter of this year by the Ministry of Food and Drug Safety. In order to advance into the global health functional food markets, we have also started working on paperwork for approval from regulatory agencies in the US and Europe with INTERTEK, a global CRO.

Nasal spray-type Covid-19 treatment 'Spike Down' has completed pre-IND with global CRO company TARGET HEALTH and is preparing an IND submission to the US FDA for a phase 1/2a clinical trial. The treatment for macular degeneration is also about to submit an IND for Phase 1/2a clinical trial to the US FDA with GCT, a global CRO company.

YJ Chung, CEO of Caregen, said, "We are promptly pursuing detailed execution plans for the health functional food business and pharmaceutical business that we have been preparing for a long time, and we expect that the value of the peptide platform will be properly reevaluated.