PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩115 per share · Prices as of the 2026-10-02 close
Yuyu Pharma continues a profitable run centered on dutasteride contract manufacturing and its supplement and medical device subsidiaries, while cultivating a new growth pillar in U.S. pet biotech.
In 2025, consolidated revenue reached KRW 140.88bn, operating profit KRW 11.02bn, and owners' net profit KRW 8.15bn, marking a second consecutive profitable year.
Operating profit swung to a loss in Q4 2025 before recovering to the KRW 4bn range in both Q1 and Q2 2026, underscoring notable quarter-to-quarter volatility.
The company supplies dutasteride to 27 domestic pharmaceutical firms on a contract basis with a steadily rising market share, while the government discusses expanding health insurance coverage for hair-loss treatments.
Through its U.S. holding company Yuyu Ventures and subsidiaries Yuyu Bio and Mervyn's Petcare, the firm is pursuing a cat-focused pet biopharma and supplement business as a new growth driver.
In June 2026, the company canceled its entire treasury stock, equal to 7.54% of shares outstanding, and raised its dividend, strengthening shareholder returns.
Founded in 1941 as Yuhan Trading Co. before separating from Yuhan Corporation and later taking its current name, Yuyu Pharma is a legacy pharmaceutical company operating a production base in Jecheon, North Chungcheong Province.
Consolidated revenue is composed of 68.7% pharmaceuticals, 27.2% from health-supplement subsidiary Yuyu Healthcare, and 4.3% from medical-device subsidiary Yuyu Medicals.
By product line, soft-capsule sales including Newmaco led growth, rising sharply to KRW 45.7bn, while coated-tablet sales including Tanamin fell to KRW 36.9bn and merchandise sales including Physiomer declined to KRW 5.4bn, reflecting a mixed picture across product categories.
The company also runs a contract manufacturing business supplying the hair-loss ingredient dutasteride to 27 domestic pharmaceutical companies, with its market share in this segment expanding every year.
However, overseas exports account for only about 1% of sales, leaving the company more than 98% dependent on the domestic market. Subsidiaries include Yuyu Healthcare (supplement OEM/ODM), Yuyu Medicals (device sales), and investment vehicle YUYU VENTURES.
More recently, in November 2025 the company established U.S. holding company Yuyu Ventures, under which Yuyu Bio develops pet biopharmaceuticals and Mervyn's Petcare handles supplements, both centered on cats as it pushes a new growth business.
This reflects a broader strategic shift away from a generics- and co-promotion-heavy model toward proprietary products and overseas new business lines.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩35.8B | ₩2.2B | 6.3% |
| 2025Q3 | ₩37.8B | ₩5B | 13.2% |
| 2025Q4 | ₩34.3B | -₩100M | −0.4% |
| 2026Q1 | ₩35.5B | ₩4.3B | 12.1% |
| 2026Q2 | ₩36.7B | ₩4B | 10.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩138.9B | -₩600M | -₩6B | −0.4% | −5.1% | 58.2% |
| 2023 | ₩137.2B | ₩400M | -₩7.2B | 0.3% | −6.4% | 64.7% |
| 2024 | ₩133.1B | ₩11.7B | ₩8.7B | 8.8% | 7.0% | 53.8% |
| 2025 | ₩140.9B | ₩11B | ₩8.2B | 7.8% | 6.3% | 47.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Yuyu Pharma posted an operating loss of KRW 0.59bn in 2022 and only a marginal KRW 0.36bn operating profit in 2023, before profit jumped to KRW 11.70bn in 2024, marking a turn to sustained profitability that continued in 2025 with KRW 11.02bn in operating profit — a second consecutive profitable year.
Revenue stagnated somewhat, moving from KRW 138.88bn in 2022 to KRW 137.21bn in 2023 and KRW 133.15bn in 2024, before rising again to KRW 140.88bn in 2025.
The operating margin swung from -0.4% in 2022 and 0.3% in 2023 to a sharp 8.8% in 2024, then eased slightly to 7.8% in 2025, suggesting the profit base is stabilizing at a higher level.
Owners' net profit moved from losses of KRW 5.99bn and KRW 7.18bn in 2022 and 2023, respectively, to profits of KRW 8.72bn in 2024 and KRW 8.15bn in 2025.
On a quarterly basis, operating profit of KRW 2.25bn and net profit of KRW 0.20bn in Q2 2025 improved markedly to KRW 4.99bn and KRW 3.98bn in Q3 2025, only for operating profit to swing back to a loss of KRW 0.13bn in Q4 2025, highlighting significant quarter-to-quarter fluctuation.
The recovery then continued with operating profit of KRW 4.30bn and net profit of KRW 3.49bn in Q1 2026, followed by KRW 4.00bn and KRW 3.65bn in Q2 2026 — two consecutive quarters of stable profit generation.
Notably, the sum of owners' net profit over the most recent four quarters (Q3 2025 through Q2 2026) reached KRW 12.50bn, exceeding the full-year net profit levels recorded in both 2024 and 2025.
Still, the Q4 2025 loss illustrates how earnings can swing sharply even in quarters of similar revenue scale, making the consistency of future quarterly profits a key point to monitor.
The domestic pharmaceutical market continues moderate growth driven by an aging population and rising drug demand, while the health-supplement market is also expanding on growing health consciousness.
Yuyu Pharma's traditional business mix, heavily weighted toward generics and co-promoted products, has drawn industry commentary that growth is capped without proprietary new or improved drugs.
Against this backdrop, the government plans to pursue expanded health insurance coverage for hair-loss treatment later this year, with the number of patients prescribed dutasteride and finasteride-class drugs rising more than 60% over five years, from roughly 807,000 in 2021 to about 1.32 million in 2025.
If coverage expansion materializes, the oral dutasteride and finasteride market is expected to grow, though industry voices have also flagged the possibility of pricing pressure tied to health insurance budget constraints.
Meanwhile, the global animal health market is projected to grow from USD 47 billion in 2022 to USD 99.5 billion by 2032, at a compound annual growth rate exceeding 7.7%.
This market is led by U.S.-based Zoetis, which holds roughly a 20% share, while domestic peers Daewoong Pharmaceutical and HK inno.N are ahead in developing new drugs targeting dogs — making Yuyu Pharma's focus on the feline segment a differentiation strategy aimed at a comparatively less crowded niche.
The company's U.S. subsidiary Yuyu Bio is developing new drug candidates, including a treatment for feline gingivostomatitis, based on long-acting recombinant protein therapeutic technology, while Mervyn's Petcare separately expands a supplement lineup for cats covering joint, skin, gut health and multivitamins.
Mervyn's Petcare has already launched its first products, Dental Bites and an Omega+Multivitamin lickable supplement, via Amazon, with further distribution expansion anticipated.
In the benign prostatic hyperplasia space, the company is conducting bioequivalence trials for improved-drug candidates YY-DUT and YY-DUT-Tam targeting the U.S. and European markets, which could, if successful, help raise the company's currently low share of overseas revenue.
Regarding the government's discussion on expanding health insurance coverage for hair-loss treatment, the company has stated it expects a direct benefit given its already-established stringent dutasteride manufacturing process.
Yuyu Healthcare has broken ground on an expansion of its Hoengseong plant to boost supplement production capacity, and Yuyu Medicals has begun selling new items such as blood-oxygen saturation monitors, continuing diversification in the medical device segment.
Still, the U.S. new-business entities currently generate no revenue or post losses, suggesting these should be viewed as investments for securing medium- to long-term growth drivers rather than near-term earnings contributors.
The company's shares trade at a level below book value per share, indicating the market is pricing the stock at a discount to net asset value.
Following the shift from consecutive losses in 2022-2023 to a profit recovery in 2024-2025, market earnings multiples appear to have adjusted accordingly, which may suggest that confidence in the durability of earnings has not yet fully solidified.
The company signaled its commitment to shareholder returns by canceling its entire treasury stock and raising dividends in the first half of 2026, though a governance-focused report noted that procedures enhancing predictability — such as advance dividend policy notices or timely shareholder meeting announcements — remain underdeveloped.
Because new growth areas such as the pet biotech business are still at an early, pre-revenue stage, the current market valuation can be interpreted as reflecting both the earnings stability of the existing CMO and supplement businesses and the as-yet-limited visibility into new business outcomes.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
In June 2026, the company canceled its entire treasury stock — common and preferred shares equal to 7.54% of shares outstanding — and also raised its year-end dividend. This is seen as a preemptive response to regulatory trends mandating treasury stock cancellation under revised commercial law. The reduction in shares outstanding is a structural change that can support per-share metrics.
The company supplies dutasteride to 27 domestic pharmaceutical firms, expanding its market share from 19% in 2022 to 32% in 2025.
As the government discusses expanding health insurance coverage for hair-loss treatment later this year, any coverage expansion could increase contract manufacturing volumes tied to a larger prescription market.
The stringent manufacturing requirements for the ingredient are also cited as a potential barrier to new entrants.
Through U.S. subsidiaries Yuyu Bio and Mervyn's Petcare under holding company Yuyu Ventures, the firm is pursuing a cat-focused biopharmaceutical and supplement business, having already launched its first products via Amazon.
With the global animal health market projected to grow at over 7.7% annually, the strategy aims to establish an early position in the comparatively less competitive feline segment. Participation in the UCLA-affiliated Magnify startup accelerator program has helped validate the business while reducing initial costs.
The swing from KRW 4.99bn in operating profit in Q3 2025 to a loss of KRW 0.13bn in Q4 2025 illustrates significant quarter-to-quarter fluctuation.
While profits recovered steadily in Q1 and Q2 2026, the company's history of consecutive losses in 2022-2023 suggests the durability of current profitability still requires further validation.
With overseas exports accounting for only about 1% of sales, the company remains more than 98% dependent on the domestic market and retains a traditional business structure weighted toward generics and co-promoted products.
Industry commentary suggests growth potential could be capped without proprietary new drugs, leaving earnings sensitive to policy shifts such as drug price cuts.
The U.S. pet-related entities currently generate no revenue or post losses, and the company itself estimates that developing a new drug for cats could take at least eight to ten years, requiring prolonged upfront investment.
In addition, last year's corporate governance report showed compliance with only 5 of 15 core governance indicators, a compliance rate of just 33.3%, which is also worth factoring in.
Expansion of health insurance coverage for hair-loss treatment remains under public deliberation and has not been finalized.
Even if coverage expansion occurs, industry voices have flagged the possibility of accompanying price pressure tied to health insurance budget constraints, leaving both the scale and timing of any benefit uncertain.
The U.S. pet biotech and supplement business is a late entry into a market already dominated by established players such as Zoetis.
There is execution risk in areas such as FDA regulatory compliance, distribution network building, and local marketing that a traditionally domestic-focused pharmaceutical company may face, and the related entities are currently posting losses.
The corporate governance report showed the company failed to meet several core predictability-related indicators, such as issuing shareholder meeting notices four weeks in advance or providing advance notice of dividend policy.
Its compliance rate was assessed as lower than that of leading pharmaceutical companies or peers of similar revenue scale, leaving room for improvement in shareholder communication.
The Q3 2026 preliminary earnings disclosure will show whether the profit recovery seen in Q1 and Q2 continues, or whether volatility similar to Q4 2025 recurs.
This is when the Ministry of Health and Welfare's discussion on expanding health insurance coverage for hair-loss treatment is expected to take clearer shape, warranting a check on how any coverage decision and its scope could affect dutasteride contract manufacturing volumes.
It will be worth tracking Mervyn's Petcare's distribution expansion beyond Amazon and new product launch pace, as well as progress on Yuyu Bio's feline gingivostomatitis drug candidate, to gauge when the new business might begin contributing to revenue.
Progress on and completion timing of Yuyu Healthcare's Hoengseong plant expansion should be monitored to assess whether the added supplement production capacity translates into actual revenue growth.
Yuyu Pharma solidified its financial structure with a return to profitability in 2024-2025, but the swing to a loss in Q4 2025 confirms that quarterly earnings remain volatile.
While the dutasteride CMO business and its supplement and medical device subsidiaries form the earnings base, the government's discussion of expanding health insurance coverage for hair-loss treatment is cited as a potential tailwind that has not yet been finalized.
The pet biotech business through U.S. units Yuyu Bio and Mervyn's Petcare targets a fast-growing market but remains at an early, loss-making, pre-revenue investment stage.
The company demonstrated its commitment to shareholder returns by canceling its entire treasury stock and raising dividends in the first half of 2026, though concerns about a low governance compliance rate have also been raised.
Ultimately, securing earnings stability in the existing business while building visible results in new ventures appear to be the two key variables that will shape the company's future earnings trajectory.
Readers should track upcoming quarterly results together with policy and new-business developments before forming any judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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