PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Prescription drug sales momentum has kept operating profit in the black, but net income attributable to owners posted losses in the two most recent quarters, influenced by factors tied to affiliate Rezolute.
Q2 2026 standalone revenue of KRW 137.1bn (+9.4% YoY) with operating profit of KRW 2.63bn, swinging from an operating loss a year earlier
Prescription drug sales of KRW 89.5bn (+13.6%) led growth, with newly introduced oncology drugs Eloxatin and Zaltrap contributing KRW 9.0bn
Consolidated 2025 revenue reached KRW 535.1bn with operating profit of KRW 3.29bn (0.6% margin) and a narrow net loss, but net losses attributable to owners widened again in Q1 and Q2 2026
Debt ratio rose from 128.1% in 2022 to 184.1% in 2025, with equity declining continuously over the same period
Affiliate Rezolute's rare-disease drug trial failed to meet its primary endpoint in late 2025, while topline data for the tumor-induced hyperinsulinism indication is expected in H2 2026
Handok was founded in 1954 and listed on the KOSPI in 1976, positioning itself as a total healthcare company spanning prescription drugs, over-the-counter medicines, medical devices and diagnostics, and health foods.
Key prescription products include diabetes treatments Amaryl, Tenelia, and Lantus, along with hypertension drugs Aprovasque, Aprovel, and Coaprovel, while its OTC lineup is led by digestive aid Whestal and arthritis treatment Ketotop.
In the second quarter of 2026 on a standalone basis, prescription drug sales of KRW 89.5bn accounted for the largest share, up 13.6% year over year, followed by OTC sales of KRW 18.5bn (up 14.4%) and medical device/diagnostic sales of KRW 20.4bn (up 5.6%).
Newly introduced oncology drugs Eloxatin and Zaltrap contributed KRW 9.0bn in quarterly sales, adding to portfolio diversification. The company's revenue structure has also been affected by the spin-off of its healthcare products division into Handok Healthcare.
Research and development centers on an open-innovation strategy involving partnerships with domestic and overseas biotech ventures, expanding into rare and metabolic disease drugs through its stake in US-based Rezolute, the digital therapeutic SleepQ, and NB Postech's liquid biopsy diagnostic device.
Through its subsidiary Innocube, Handok also invests in and incubates early-stage biohealth startups.
In terms of scale, the company sits in the mid-tier of Korea's listed pharmaceutical sector, trailing top-tier players such as GC Biopharma, Chong Kun Dang, and Hanmi Pharm, each of which generates over KRW 1 trillion in annual revenue.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩130.5B | ₩200M | 0.2% |
| 2025Q3 | ₩144.7B | ₩200M | 0.1% |
| 2025Q4 | ₩140.1B | ₩4.5B | 3.2% |
| 2026Q1 | ₩135.4B | ₩800M | 0.6% |
| 2026Q2 | ₩140.7B | ₩2.8B | 2.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩543.8B | ₩28.5B | ₩10.7B | 5.2% | 2.8% | 128.1% |
| 2023 | ₩522.7B | ₩12.6B | -₩28.8B | 2.4% | −8.5% | 132.0% |
| 2024 | ₩507.4B | ₩500M | -₩52.6B | 0.1% | −18.3% | 172.8% |
| 2025 | ₩535.1B | ₩3.3B | -₩2.2B | 0.6% | −0.8% | 184.1% |
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
On a consolidated basis, 2025 revenue reached KRW 535.1bn, up from KRW 507.4bn in 2024, while operating profit came in at KRW 3.29bn (0.6% margin), a modest improvement from roughly KRW 0.54bn in 2024.
Net income attributable to owners was a loss of KRW 2.15bn in 2025, a significant narrowing from the KRW 52.6bn loss posted in 2024, though it did not turn positive.
Looking further back, the company recorded a net profit of KRW 10.7bn attributable to owners in 2022 before swinging to a loss of KRW 28.8bn in 2023, marking the start of a two-year loss streak that extended into 2025.
Cash flow from operations was solid at KRW 30.5bn in 2022 and KRW 36.0bn in 2023, turned negative at KRW -2.79bn in 2024, and recovered to positive KRW 3.98bn in 2025.
By quarter, the company posted net profit attributable to owners in Q3 2025 (KRW 3.95bn) and Q4 2025 (KRW 7.94bn), only to swing back to losses in Q1 2026 (KRW -8.55bn) and Q2 2026 (KRW -12.72bn).
Notably, operating profit remained positive in both Q1 and Q2 2026 (KRW 0.75bn and KRW 2.77bn, respectively), yet net losses were substantial, and reports indicate the company booked an accounting loss of roughly KRW 11.3bn last year tied to affiliate Rezolute, suggesting below-the-line factors have weighed heavily on owner net income volatility.
On the balance sheet, the debt ratio climbed steadily from 128.1% in 2022 to 184.1% in 2025, while equity attributable to owners declined from KRW 379.8bn in 2022 to KRW 276.6bn in 2025.
Overall, the core pharmaceutical business appears to be establishing an operating profit trend, while net income at the owner level remains subject to sizeable non-operating swings.
Korea's listed pharmaceutical sector broadly improved. Based on 2025 business reports, the combined revenue of 65 listed pharmaceutical companies reached KRW 28.11 trillion, up 7.60% year over year, with operating profit rising 7.91% to KRW 1.918 trillion and net profit surging 43.25% to KRW 1.536 trillion.
Among the 35 KOSPI-listed names, revenue totaled KRW 20.67 trillion (up 6.82%) and net profit rose 50.67% to KRW 756.2bn, with GC Biopharma (KRW 1.9912 trillion), Chong Kun Dang (KRW 1.6924 trillion), Kwangdong Pharmaceutical (KRW 1.6595 trillion), Daewoong Pharmaceutical (KRW 1.5708 trillion), and Hanmi Pharm (KRW 1.5475 trillion) leading the pack with revenue above KRW 1 trillion each.
Against this backdrop, Handok posted 2025 revenue of KRW 535.1bn, up 5.48% year over year, a growth rate trailing top-tier peers such as GC Biopharma (+18.54%) and Daewoong Pharmaceutical (+10.42%).
The domestic pharmaceutical industry continues to see intensifying generic and biosimilar competition, with drug-development-focused large pharma companies generally growing faster.
Rather than pursuing in-house novel drug development at scale, Handok relies on an open-innovation strategy of securing external pipelines, which means its results can be relatively more sensitive to the clinical outcomes of affiliates such as Rezolute.
The company appears to be continuing momentum from newly introduced oncology drugs Eloxatin and Zaltrap in its prescription segment, alongside expanding sales of medical devices such as continuous glucose monitors.
On the open-innovation front, the digital therapeutic SleepQ has launched, and first-quarter 2026 IR materials reportedly noted first-patient enrollment in a related clinical trial in Germany.
Affiliate Rezolute aims to report topline results in the second half of 2026 for its Phase 3 upLIFT study targeting the tumor-induced hyperinsulinism indication, following completion of full patient enrollment.
By contrast, the Phase 3 sunRIZE study for the congenital hyperinsulinism indication, whose results were announced in late 2025, failed to achieve statistical significance on its primary endpoint, and the company has stated that discussions with the FDA on the path forward are ongoing, with no confirmed timeline or outcome yet.
In diagnostics, NB Postech's liquid-biopsy-based technology for detecting thyroid cancer recurrence and metastasis forms part of the open-innovation portfolio.
While the core prescription and OTC drug business shows steady growth, the timing and direction of open-innovation pipeline outcomes remain fluid, contingent on clinical and regulatory developments.
The current share price trades at a discount to book value per share, placing it below net asset value on a relative basis.
However, because net income has posted losses over the most recent four quarters, profit-based comparisons remain limited, and valuation is better assessed alongside net asset value and revenue growth trends together.
The company has a long history of dividend payments, but with net income levels having contracted recently, the sustainability of the dividend policy is tied to the pace of any earnings recovery.
Net income attributable to owners swung from a profit in 2022 to losses across 2023–2025, though the loss size has been narrowing over that span, making the eventual timing of a return to profitability a point of interest for any valuation reassessment.
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
Prescription drug sales reached KRW 89.5bn in Q2 2026 on a standalone basis, up 13.6% year over year, driving overall growth. Newly introduced oncology drugs Eloxatin and Zaltrap generated KRW 9.0bn in quarterly sales, reflecting the benefits of portfolio diversification. OTC and medical device/diagnostic sales also grew in tandem, confirming broad-based sales momentum.
Consolidated operating profit improved to KRW 3.29bn in 2025 from roughly KRW 0.54bn in 2024, and net income attributable to owners turned positive in the third and fourth quarters of 2025. Operating cash flow swung from KRW -2.79bn in 2024 to positive KRW 3.98bn in 2025, signaling a recovery in cash generation. Operating profit itself remained positive in both Q1 and Q2 2026.
Affiliate Rezolute plans to report topline results from its Phase 3 upLIFT study for the tumor-induced hyperinsulinism indication in the second half of 2026, and the drug has already received FDA breakthrough therapy designation for that indication.
Discussions with the FDA on the path forward for the congenital hyperinsulinism indication are also ongoing, leaving open the possibility of a renewed regulatory pathway depending on the outcome.
The open-innovation portfolio is also diversifying through the launch of the digital therapeutic SleepQ and liquid-biopsy diagnostic technology.
In both Q1 and Q2 2026, operating profit was positive, yet net income attributable to owners posted losses of KRW 8.55bn and KRW 12.72bn, respectively. Reports indicate an accounting loss of roughly KRW 11.3bn last year tied to affiliate Rezolute, reducing the predictability of net income at the owner level. Quarterly results have shown an alternating pattern of profit and loss.
The debt ratio rose for four consecutive years, from 128.1% in 2022 to 184.1% in 2025, while equity attributable to owners declined from KRW 379.8bn to KRW 276.6bn over the same period. Large net losses in 2023 and 2024 accelerated the equity decline. The trend points to a weakening financial buffer.
Rezolute's Phase 3 sunRIZE study for the congenital hyperinsulinism indication failed to achieve statistical significance on its primary endpoint when results were announced in late 2025.
This stemmed partly from a larger-than-expected improvement observed in the placebo group, leaving the future approval pathway uncertain. Pipeline uncertainty is likely to persist until results from the upLIFT study in the tumor-induced hyperinsulinism indication are released.
Rezolute's congenital hyperinsulinism treatment failed to meet its primary endpoint, and the outcome of ongoing discussions with the FDA on the path forward has not been finalized.
Uncertainty also remains around the upLIFT study results for the tumor-induced hyperinsulinism indication until they are released in the second half of 2026. Depending on clinical outcomes, the value of the affiliate stake and related accounting gains or losses could fluctuate again.
The company has a high dependence on imported active pharmaceutical ingredients, meaning a stronger exchange rate translates directly into higher cost of goods sold. Rising API prices and exchange rate volatility were cited as cost-pressure factors through the first three quarters of 2025 as well. The trajectory of gross margin could be heavily influenced by exchange rate and raw material price trends.
The debt ratio has risen for four consecutive years, while equity has continuously contracted. Large net losses in 2023 and 2024 accelerated the decline in equity, so any delay in earnings recovery could further weaken the financial buffer. The capacity to sustain dividends is also linked to the pace of any net income recovery.
Watch for the release and content of topline results from Rezolute's Phase 3 upLIFT study in tumor-induced hyperinsulinism. The outcome could affect how gains or losses tied to the affiliate stake are recognized.
The Q3 2026 earnings disclosure should be checked to see whether net income attributable to owners returns to profit and whether the gap between operating profit and net income narrows.
Monitor for the outcome of discussions between Rezolute and the FDA regarding the future development path for the congenital hyperinsulinism indication, as this will determine whether the regulatory pathway can be reopened.
When full-year 2026 results and the dividend decision are disclosed, both the pace of net income recovery and the sustainability of dividend policy should be reviewed together.
Handok has shown improving consolidated operating profit on the back of solid prescription drug sales, with net income attributable to owners even turning positive temporarily in the third and fourth quarters of 2025.
However, in the first and second quarters of 2026, net income attributable to owners swung back into loss despite positive operating profit, a pattern that appears linked to non-operating factors tied to affiliate Rezolute.
On the balance sheet side, the debt ratio has risen for four consecutive years and equity has continued to contract, reflecting lingering effects from the large net losses recorded in 2023 and 2024.
The open-innovation pipeline remains heavily dependent on Rezolute's clinical outcomes: the congenital hyperinsulinism indication failed to meet its primary endpoint, while results for the tumor-induced hyperinsulinism indication are not expected until the second half of 2026, leaving near-term uncertainty.
The company thus sits at a juncture where core pharmaceutical business growth coexists with clinical and regulatory uncertainty in its open-innovation pipeline.
Ahead of any investment decision, it would be useful to track the upcoming third-quarter results together with developments in Rezolute's clinical trials and regulatory discussions.
Report written 2026-09-05 · Data as of 2026-09-04
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