High Won Exchange Rate Affects Pharma & Bio Companies Differently

A depreciating won is often viewed as advantageous for export‑oriented companies because foreign sales translate into higher domestic revenue when converted. However, this simple equation does not readily apply to pharmaceutical and biotechnology firms. As these companies expand globally—through new drugs, biopharmaceuticals, CDMO services, API production, and overseas subsidiaries—their foreign‑currency revenue base widens. At the same time, they incur greater foreign‑currency expenses such as raw‑material imports, foreign‑currency purchases, and foreign‑currency‑denominated debt. Consequently, the effect of a high exchange rate on earnings depends more on the balance of foreign‑currency assets and liabilities at the reporting date than on the sheer volume of overseas sales.