SEOUL, Jan. 2 (Korea Bizwire) — A recent study has revealed that one third of South Korean biotechnology companies have yet to make a single sale.
According to a survey conducted by the Korea Biotechnology Industry Organization, 231 out of 786 biotech companies, or 29.4 percent, were in the pre-sales phase as of 2018.
Even if sales were generated, 263, or 33.5 percent, were below break-even point, which shows that the majority are in the stage of investment in research and development, and have yet to commercialize and products.
Only 292, or 37.2 percent, posted sales above the break-even point.
Regardless of whether they reached the break-even point or not, 261 companies or 47 percent have made sales for more than 10 years. Last year, 24 or 4.3 percent of the companies saw their first sales.
The average capital of the biotech industry as a whole is 10.7 billion won (US$9.26 million), and shareholders’ equity to total assets is 38 percent.
Despite weak business performance by many companies, employment and investment costs across the industry have increased.
The workforce increased 4.8 percent from 44,895 in 2017, reaching 47,047. Investment was worth 2.34 trillion won, up 5.8 percent from 2.22 trillion won the previous year.
Of the total, the biomedicine industry had the largest share at 1.47 trillion won, accounting for 63.1 percent.
This was followed by 236.4 billion won, or 10.1 percent, for biochemical energy and 211.4 billion won, or 9 percent, for bio-service, and these three areas accounted for 82.2 percent of total investment.
Kevin Lee (email@example.com)