Boryung’s Second-Quarter Net Income Surges 171%; Expands Into Oncology and Space

Boryung reported net income of 24.1 billion won in the second quarter of 2026, up 171.4% from 8.9 billion won in the same period a year earlier. Revenue rose 11.2% year over year to 279.6 billion won, while cumulative first-half revenue reached 535 billion won, the highest ever recorded for a first half.

■ Taxotere acquisition emerges as a major earnings driver

The key factor in the results was Taxotere, the blockbuster oncology drug acquired from Sanofi. Boryung invested approximately 170 million euros (about 279.6 billion won) to acquire the rights to market and manufacture Taxotere outright in 19 countries, including South Korea, Europe and South America. Revenue from the drug began to be fully reflected in its consolidated results in June.

Second-quarter operating profit, however, fell 6.2% year over year to 23.8 billion won. The decline was attributed to the simultaneous recognition of amortization expenses for Taxotere-related intangible assets and global marketing costs. The fact that operating profit declined despite a sharp increase in net income indicates that the cost burden in the early stages of the acquisition continues to pressure the company’s profit structure.

■ LBA strategy drives oncology revenue to more than triple in 5 years

Boryung’s growth formula is known as LBA, or Legacy Brands Acquisition. The strategy involves acquiring the marketing and manufacturing rights to global original drugs whose patents have expired and maintaining their market positions. The Taxotere acquisition is a representative example.

The strategy is reflected in the numbers. Boryung’s oncology revenue grew from 79.8 billion won in 2019 to approximately 250 billion won in 2025. Its compound annual growth rate (CAGR) over the past five years was approximately 23.5%. In a market where multinational pharmaceutical companies account for more than 76% of oncology prescription spending in South Korea, Boryung is the only domestic pharmaceutical company ranked among the top four by prescription spending.

Its flagship antihypertensive drug, the Kanarb family, has also maintained steady growth. In a May 2026 report, SK Securities said, “Continued growth is expected for high-margin LBA products, and we are raising our target price to 14,000 won to reflect expectations that the risk from Kanarb’s drug price reduction lawsuit will be resolved.”

Following the Taxotere acquisition, Boryung is also moving in earnest to develop a global contract development and manufacturing organization (CDMO) business for cytotoxic oncology drugs, centered at its Yesan Campus in South Chungcheong Province. The effort is intended to diversify its revenue structure beyond simple sales and establish a global oncology manufacturing hub. Boryung is the first South Korean pharmaceutical company to acquire an entire original oncology drug business from a global big pharma company and undertake global sales and CDMO operations directly.

■ $60 million space investment represents a bet on the future

Boryung is expanding beyond pharmaceuticals into space. It has invested more than $60 million in Axiom Space, a U.S. company developing commercial space stations, and established a joint venture, BRAX Space. The company aims to gain an early foothold in space pharmaceuticals, including protein crystallization and drug substance development using microgravity environments.

Michael Suffredini, CEO of Axiom Space, said, “Boryung is a key partner in unlocking the potential of in-orbit manufacturing and research.” BRAX Space plans to pursue commercial projects at Axiom Space’s space station, including experiments involving drug substances and the development of health care solutions for astronauts.

Industry observers interpret the space pharmaceutical investment less as a short-term revenue model than as proactive positioning aimed at the era of space habitation 20 to 30 years from now. Although it currently makes no contribution to earnings, some view it as a potential factor in a reassessment of the company’s value in the global bio-space convergence market.