SK Biopharmaceuticals (326030) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 144.4B, up 26.7% year-over-year, with operating profit of KRW 25.7B and net profit of KRW 19.6B, marking a return to profitability.

• XCOPRIⓇ (Cenobamate) accounted for 98.2% of Q1 sales, with US sales up 3.1% quarter-over-quarter and 46.6% year-over-year, and expanded licensing in Europe, Asia, and MENA.

• Continued global expansion through licensing deals and strategic partnerships, including new contracts in Korea and MENA.

• Operating profit rose 149.3% year-over-year but fell 36.9% sequentially due to seasonal factors and absence of a milestone payment.

• Net profit for Q1 2025 was KRW 19.6B, a 102.3% increase year-over-year.

Financial highlights

• Gross profit for Q1 2025 was KRW 133.9B, up 31.2% year-over-year; gross margin reached 92.7%.

• SG&A expenses increased 18.0% year-over-year to KRW 108.2B.

• R&D expense was KRW 42.0B, 29.1% of sales.

• Basic EPS was KRW 298, up from KRW 164 in Q1 2024.

• Cash and cash equivalents at quarter-end were KRW 266.9B.

Outlook and guidance

• Focus on accelerating XCOPRIⓇ sales growth in the US and expanding global licensing for Cenobamate.

• Direct-to-consumer campaign for XCOPRIⓇ to launch in 1H 2025 to boost awareness.

• Full-year guidance for other revenue remains at KRW 65B.

• PGTC study results expected by year-end 2025, with NDA submission for oral suspension planned within the year.

• Continued investment in R&D for CNS and oncology pipelines, including radiopharmaceuticals and targeted protein degradation.