EuBiologics' second factory (V Plant) in Chuncheon. [EuBiologics]
EuBiologics' second factory (V Plant) in Chuncheon. [EuBiologics]

Vaccine maker EuBiologics disclosed Thursday that it posted sales of 48.9 billion won ($34.6 million) and operating profit of 10.8 billion won in the first half of this year.

Sales and operating profit fell 35.5 percent and 61.7 percent, respectively, from the same period last year. The company said the decline was largely a base effect from a surge in emergency cholera vaccine supply during the first half of last year, when a global cholera outbreak drove concentrated shipments, compounded by timing differences in quarterly revenue recognition tied to its delivery schedule.

Demand in the global cholera vaccine market remains solid, however. Beyond emergency response volumes, preventive vaccination campaigns targeting high-risk cholera regions have been consistently expanding, further strengthening the mid- to long-term demand base.

EuBiologics has secured supply contracts for approximately 51.6 billion won worth of its oral cholera vaccine, Euvichol-S, in the second quarter, based on single-sale and supply contract disclosures. Those volumes are being shipped sequentially in line with contract and delivery schedules, with a significant portion set to be recognized as third-quarter sales.

Additional supply deals below the individual disclosure threshold are also being pursued, and the company's earnings recovery is expected to gain full momentum starting in the third quarter.

As the sole global supplier of cholera vaccines, EuBiologics is set to sharply expand vaccine shipments from the third quarter, with analysts saying the company's full-year earnings target is coming into view beyond the quarter-to-quarter volatility.

"The large supply volumes secured in the second quarter will be shipped sequentially, and earnings improvement will gain full momentum from the third quarter," a company official said. "We will meet our annual targets without disruption through stable production and supply."


silverpaper@heraldcorp.com