PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Yungjin Pharm has posted four consecutive quarters of operating and net losses since late 2025, making profitability recovery the key challenge, while its status as a KT&G group affiliate and the global clinical progress of mitochondrial disease candidate KL1333 remain medium-term variables.
2025 revenue rose slightly year over year to KRW 254.26 billion, but operating profit fell to KRW 3.42 billion and net income attributable to owners swung back to a loss of KRW 0.23 billion.
Operating losses and net losses attributable to owners have continued for four straight quarters, from Q3 2025 through Q2 2026.
The mitochondrial disease candidate KL1333 had its licensing counterparty transferred from Abliva to Pharming Technologies, with the global FALCON study targeting completion by the end of 2027.
The company lost the appeal in a damages lawsuit tied to the Yutoma topical solution, with a ruling of roughly KRW 9.3 billion upheld, and it has yet to decide whether to appeal to the Supreme Court.
Partnership-based revenue diversification continues, including cefcapene granule exports to China and a co-promotion arrangement with Daewoong Bio.
Founded in 1962, Yungjin Pharm is the pharmaceutical affiliate of the KT&G group, focused on manufacturing and selling pharmaceuticals and pharmaceutical raw materials.
Its production base consists of two plants, in Hwaseong City, Gyeonggi Province and Wanju County, North Jeolla Province, with headquarters in Songpa-gu, Seoul.
Domestic sales are centered on expanding sales of chronic disease and respiratory products, and Q1 2026 domestic revenue reached roughly KRW 59 billion, up 3.1% year over year.
Overseas, the company signed an export agreement with Zhongshan Belling to enter the Chinese market for cefcapene granule finished products, under which Zhongshan Belling handles marketing and distribution in China while Yungjin Pharm handles manufacturing and supply.
With Daewoong Bio, it has a co-promotion agreement since June 2024 to jointly sell the antihypertensive Kodipine tablets and the second-generation cephalosporin Mecillin injection.
On the R&D side, the company holds the mitochondrial disease candidate KL1333, obtained through its 2017 absorption merger with the former KT&G Life Sciences; the asset was licensed to Sweden's Abliva AB, and in December 2025 the contractual rights and obligations were transferred to Pharming Technologies B.V., a subsidiary of the Netherlands' Pharming Group, which had acquired Abliva.
Beyond this, a generics portfolio including the anti-inflammatory drug Pelubi and a cephalosporin contract manufacturing (CMO) business also form part of the revenue base.
The controlling shareholder is parent company KT&G, which as of the 2016 merger with KT&G Life Sciences held 53% of Yungjin Pharm's common shares as the largest shareholder.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩62.5B | ₩1.9B | 3.0% |
| 2025Q3 | ₩60.9B | ₩3,644,257 | 0.0% |
| 2025Q4 | ₩66.8B | -₩1.1B | −1.6% |
| 2026Q1 | ₩63.8B | -₩1.8B | −2.8% |
| 2026Q2 | ₩61.6B | -₩1.5B | −2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩218.4B | -₩7.4B | -₩22B | −3.4% | −24.4% | 126.0% |
| 2023 | ₩234.9B | ₩3.1B | -₩3.9B | 1.3% | −4.3% | 152.8% |
| 2024 | ₩252B | ₩8.7B | ₩1.2B | 3.5% | 1.4% | 160.9% |
| 2025 | ₩254.3B | ₩3.4B | -₩200M | 1.3% | −0.2% | 186.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Annual revenue rose for four consecutive years, from KRW 218.38 billion in 2022 to KRW 234.90 billion in 2023, KRW 252.04 billion in 2024, and KRW 254.26 billion in 2025.
Operating profit, by contrast, swung from a loss of KRW 7.36 billion in 2022 to gains of KRW 3.12 billion in 2023 and KRW 8.72 billion in 2024, before shrinking again to KRW 3.42 billion in 2025 as the operating margin fell from 3.5% to 1.3%.
Net income attributable to owners also turned from a loss of KRW 3.88 billion in 2023 to a profit of KRW 1.23 billion in 2024, only to revert to a loss of KRW 0.23 billion in 2025.
On a quarterly basis, Q2 2025 was relatively solid with operating profit of KRW 1.89 billion and net income of KRW 0.34 billion, but Q3 2025 operating profit collapsed to just KRW 3.6 million and net income turned to a loss of KRW 1.17 billion.
This was followed by operating and net losses in Q4 2025 (operating loss of KRW 1.09 billion, net loss of KRW 0.38 billion), Q1 2026 (operating loss of KRW 1.75 billion, net loss of KRW 2.28 billion), and Q2 2026 (operating loss of KRW 1.50 billion, net loss of KRW 2.43 billion), marking four consecutive quarters of losses.
Revenue itself remained relatively stable during this period, ranging from the high KRW 60 billion range to the mid KRW 60 billion range per quarter, while rising cost of sales and SG&A pressure eroded margins.
In its quarterly report, the company described this profitability volatility as part of a process of structural improvement aimed at management efficiency and stronger financial soundness, stating it is focusing its capabilities on restoring profitability through sales centered on high-margin items.
On the cash flow side, operating cash flow was KRW 11.73 billion in 2025, maintaining positive cash generation despite the net loss on the income statement.
Korea's pharmaceutical industry operates in an environment of continued government drug price reassessment, regulation of excessive generic proliferation, and strengthened ethical management measures such as the dual-penalty rebate law and the compliance program (CP) grading system.
Industry-wide, companies that sustain R&D investment and generate results from technology licensing are seen as having greater growth potential in this regulatory environment.
The cephalosporin antibiotic and generics market in which Yungjin Pharm operates is characterized by competition among numerous small and mid-sized pharmaceutical companies, where cost competitiveness and quality certification are key variables in winning CMO orders.
Patent disputes also shape the competitive landscape; Yungjin Pharm resolved patent infringement risk as a follow-on generic maker by winning both a Supreme Court ruling and a separate appellate court case over the anti-inflammatory drug Pelubi.
Overseas, exports to Asian markets such as China and Japan serve as a channel for revenue diversification, with the cefcapene granule project in China being a representative example.
In rare disease areas without existing treatments, such as mitochondrial disorders, it is common for domestic pharmaceutical companies' pipeline assets to be licensed out to global big pharma or biotech companies that hold full authority over clinical development and commercialization, and KL1333 follows this same structure.
The stability derived from parent company KT&G's financial resources and distribution network is a strength given the affiliate structure, but past reporting has pointed to a limitation in in-house new drug development capability, noting that R&D spending as a share of revenue was 9.8% in 2018, the year after the merger, before falling to around 6% in later years.
The most closely watched event is KL1333's registration-directed global clinical trial (the FALCON study), which is currently recruiting patients at more than 25 sites worldwide, with the number of participating sites continuing to expand.
Yungjin Pharm stated that partner Pharming Group reconfirmed during a July 2026 headquarters visit that the FALCON study's timeline for completion and data read-out by the end of 2027 remains unchanged.
The licensing counterparty has been transferred from the original partner Abliva to Pharming Technologies, which acquired Abliva, and the contract term is set to be extended from 2039 to 2047 based on a recalculation of patent expiration dates, though this extension is a conditional arrangement contingent on completed patent registration in individual countries.
In the domestic business, expanding sales of chronic disease and respiratory products and shifting toward sales centered on high-margin items are presented as pillars for restoring profitability.
Whether the revenue contribution from existing partnerships, such as the cefcapene granule export project in China and the co-promotion arrangement with Daewoong Bio, can expand further is also a variable to watch.
However, the company also lost the appeal in a damages lawsuit related to the Yutoma topical solution, and with a decision on a Supreme Court appeal still pending, the outcome of this litigation could affect the company's financial structure going forward.
With four consecutive quarters of net losses, Yungjin Pharm is in a range where earnings-based valuation metrics are difficult to calculate meaningfully.
The stock trades at a premium to book value per share, suggesting that factors beyond net asset value—such as its status as a KT&G group affiliate, the option value of pipeline assets like KL1333, and market liquidity—may be reflected in the price.
Dividends have not been paid in recent years, limiting comparisons based on dividend appeal. Given that past performance has alternated between profit and loss, the future direction of valuation may depend heavily on whether quarterly earnings turn positive again.
Whether this premium to book value persists could depend on the outcomes of individual events such as KL1333 clinical progress, litigation results, and quarterly profitability recovery.
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 2026-08-21
The mitochondrial disease candidate KL1333 targets a rare disease area with no existing treatment, and its global FALCON study is underway at more than 25 sites worldwide. Partner Pharming Group has confirmed that the trial completion timeline for the end of 2027 remains on track.
If clinical development and commercialization succeed, staged milestone payments and additional revenue from Korea and Japan marketing rights could follow.
The China export project for cefcapene granule finished products distributes risk through a contract with Zhongshan Belling, under which the partner handles local marketing and distribution while Yungjin Pharm handles only manufacturing and supply.
Combined with existing export experience in Japan, this could serve as a foothold for Asian revenue diversification. Expanding partnerships such as the co-promotion arrangement with Daewoong Bio also broaden the revenue base.
Q1 2026 domestic revenue grew 3.1% year over year, driven by expanded sales of chronic disease and respiratory products. The company has stated it is focusing its capabilities on restoring profitability through sales centered on high-margin items.
The fact that the revenue base has remained stable in the KRW 60 billion range per quarter is also a positive factor.
Operating losses and net losses attributable to owners have continued from Q3 2025 through Q2 2026. Given that performance, which was solid through Q2 2025, deteriorated sharply from Q3 onward, it remains to be confirmed whether the cost and SG&A pressure is structural or temporary. On an annual basis as well, 2025 net income reverted to a loss.
In the damages lawsuit related to the Yutoma topical solution, the company lost both the first trial and the appeal, with a damages liability of roughly KRW 9.3 billion upheld. This exceeds 10% of the company's equity, and interest continues to accrue on the amount.
With a decision on a Supreme Court appeal not yet made, uncertainty remains until the matter is finally resolved.
According to past reporting, R&D spending as a share of revenue was 9.8% in 2018, the year after the KT&G Life Sciences acquisition, but later fell to around 6%.
Full authority over KL1333's clinical development and commercialization rests with partner Pharming Technologies, making it difficult for Yungjin Pharm to directly control the pace of progress. A relatively limited set of in-house follow-on pipeline assets has also been cited as a structural risk.
The company lost the appeal in the Yutoma topical solution damages lawsuit, with roughly KRW 9.3 billion in damages and related interest reflected as a litigation provision. As a decision on a Supreme Court appeal has not yet been made, final resolution may take additional time. If the loss is finally confirmed, the cash payment burden could directly affect the financial structure.
Operating profit and net income deteriorated sharply from Q2 2025 onward, resulting in four consecutive quarters of losses. While revenue itself remained stable, expanding cost of sales and SG&A pressure eroded margins. If this volatility recurs going forward, the predictability of earnings could decline.
The government's ongoing drug price reassessment, regulation of excessive generic proliferation, and strengthened ethical management measures such as the dual-penalty rebate law could continue to pressure a revenue structure centered on generics and antibiotics.
Drug price cuts or reimbursement reassessment outcomes could affect the profitability of core products. Tightening compliance requirements, such as the CP grading system, could also add to cost burdens.
Check the Q3 2026 quarterly report to see whether the four-quarter streak of operating and net losses continues or shows signs of improvement.
Watch for a decision on whether the company will appeal the Yutoma topical solution damages ruling to the Supreme Court, as this directly affects the scale of the litigation provision and cash outflow risk.
Review the annual business report and shareholders' meeting for a comprehensive check on KL1333 contract term changes, dividend policy, and confirmed annual results.
The data read-out results from the Pharming Group-led FALCON study could clarify the likelihood of milestone payments and the commercialization path for KL1333.
Backed by the stable governance structure of being a KT&G group affiliate, Yungjin Pharm has maintained its revenue scale, but it has come under clear profitability pressure with four consecutive quarters of operating and net losses since the second half of 2025.
At the same time, the global clinical trial for mitochondrial disease treatment KL1333 is now proceeding under the Pharming Group framework, with a concrete data read-out timeline set for the end of 2027, leaving pipeline-related events still ahead.
The company also lost the appeal in the damages lawsuit tied to the Yutoma topical solution, and depending on whether it pursues a Supreme Court appeal, there could be further impact on its financial structure.
Efforts to diversify revenue continue, including expanded domestic sales of chronic disease and respiratory products, China exports, and the co-promotion arrangement with Daewoong Bio, but whether these translate into margin improvement needs to be confirmed in coming quarterly results.
Overall, the company is maintaining its revenue base while navigating a period of significant earnings volatility, with legal risk and pipeline events unfolding in parallel, warranting close attention to upcoming quarterly reports and the progress of litigation.
Report written 2026-09-05 · Data as of 2026-09-04
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