Yuhan Corporation (CEO Cho Wook-je) is experiencing rapid growth in its overseas business. The company has secured a total of USD 270 million (approximately KRW 360 billion) in orders by signing four consecutive supply contracts for active pharmaceutical ingredients (APIs), including HIV (Human Immunodeficiency Virus) treatments, with global pharmaceutical companies from September last year to the third quarter of this year, a period of less than a year. This is considered an example of how the production capacity and quality competitiveness of domestic companies' APIs have reached global standards.

This expansion of contracts is directly linked to an increase in sales for the overseas business division. The division recorded sales of KRW 210 billion in 2022 and KRW 240 billion in 2023, and it is on a steep upward trend, surpassing KRW 300 billion in 2024. Notably, sales in the third quarter alone were approximately KRW 140 billion, nearly doubling compared to the same period last year. Cumulative sales for the third quarter have already reached KRW 340 billion, surpassing last year's annual performance.

At the center of Yuhan Corporation's overseas business is CDMO (Contract Development and Manufacturing Organization). The field of synthetic drug APIs is a market with high entry barriers, such as technology, quality, and regulatory response capabilities, where once entry is successful, stable revenue can be secured for a long time. This is because supply contracts continue as long as the new drug patents are maintained. The global market size is also large. According to market research firm Grand View Research, the global synthetic drug API CDMO market is expected to be approximately KRW 47 trillion (USD 32.2 billion) in 2024, with an annual growth rate of 6.4% expected until 2030. The intensifying competition in new drug development and the diversification of supply chains after COVID-19 are also driving market expansion.

Yuhan Corporation has strengths in this field, including holding over 200 synthesis technologies, continuously securing foundational technologies, global quality capabilities at the cGMP (current Good Manufacturing Practice) level, and project management capabilities that cover the entire product lifecycle. The main areas of focus are antiviral drugs, anticancer drugs, and autoimmune diseases, with increasing cases of contract renewals with global big pharma.

The production base for Yuhan Corporation's CDMO business is Yuhan Chemical, a 100% subsidiary established in 1980. Yuhan Corporation handles sales and contracts, while Yuhan Chemical is responsible for production. Yuhan Chemical has an excellent cGMP system certified by international regulatory agencies such as the FDA, EDQM, PMDA, and TGA, and can provide a one-stop service from small-scale clinical production to large-scale commercial production.

Yuhan Chemical has an annual production capacity of 995,000 liters in total. The Ansan plant operates with a capacity of 460,000 liters, and the Hwaseong plant with 530,000 liters, with the Hwaseong HB building having commenced full operation in 2025. With the recent diversification of clients, production volume is rapidly increasing, and the company has decided to expand the HC building in preparation for additional growth.

A representative from Yuhan Corporation stated, “Yuhan Corporation is pursuing a growth strategy with the development of innovative new drugs and the CDMO business as two pillars, aiming to enter the global top 50 pharmaceutical companies,” adding, “We will generate stable profits based on world-class API production capabilities and partnerships with global pharmaceutical companies, while continuously investing in R&D to enhance corporate value and shareholder value.”

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