KOSPIBiotech & Pharma005500

Samjin Pharmaceutical

₩19,050▼ 1.70%2026-10-02 close

Market Cap

₩254.1B

Turnover

₩800M

Volume

40,000 shares

Shares out.

13.3M

PER

10.0×

PBR

0.8×

EPS

₩1,870

Dividend Yield

4.27%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩800 per share · Prices as of the 2026-10-02 close

Report overview

Legacy Pharma at a Transition Crossroads

Built on stable cash generation from Geworin and Plavis, the company is attempting to expand into new drugs, ADC platforms, and CMO business.

1
2025 consolidated revenue was KRW 309.1bn, roughly flat versus KRW 308.3bn a year earlier, while operating profit narrowed to KRW 26.8bn from KRW 31.6bn.
2
First-quarter 2026 saw both revenue and profit decline on a demand gap in respiratory drugs, but the second quarter showed a rebound in both revenue and operating profit.
3
The immunology drug candidate SJN314, next-generation ADC platforms, and the oral Alzheimer's candidate AR1001 co-developed with AriBio are positioned as the core of the new drug pipeline.
4
A large share of revenue depends on the domestic generic and reimbursed drug market, drawing attention to sensitivity to potential government generic drug pricing reforms.
5
Expansion of injectable production at the Osong plant and the launch of a CMO business are cited as factors that could ease fixed-cost burden.

Business structure

Founded in 1968, Samjin Pharmaceutical is a traditional Korean pharmaceutical company holding both over-the-counter (OTC) and prescription (ETC) products, with a business structure heavily weighted toward wholesale and hospital sales channels.

Its flagship OTC product, the analgesic Geworin, and the antiplatelet drug Plavis form the core of its tablet product line, which has historically accounted for more than half of total sales based on past disclosures.

Capsule products such as the cerebral function improver Neutrin and the thyroid hormone drug Thyronine, along with injectable antibiotics and anti-inflammatories such as Zetiam and Cefolatam, round out its major product categories.

Industry observers estimate that a substantial portion of Samjin's revenue comes from generics and improved new drugs based on off-patent ingredients, with domestic sales accounting for the vast majority of revenue, a structure that contrasts with other mid-sized pharma companies that diversify risk through export or overseas licensing revenue.

More recently, the company has been diversifying through newly established oncology and pulmonary arterial hypertension business units aimed at raising the share of high-value-added prescription drugs, and by pursuing a contract manufacturing (CMO) business leveraging its Osong plant.

On the research and development front, the immunology and inflammation drug candidate SJN314, next-generation antibody-drug conjugate (ADC) platforms named Oncoflame and Oncostarve, and the oral Alzheimer's candidate AR1001 developed jointly with AriBio are cited as flagship assets of its new drug pipeline.

Since the launch of a co-CEO structure led by second-generation owners Choi Ji-hyun and Cho Gyu-seok, the company has also strengthened marketing and business development capabilities through the recruitment of outside experts.

Competitively, the company occupies a position similar to other mid-sized domestic generic and traditional pharma firms, with the eventual commercialization of its new drug pipeline cited as a potential long-term differentiator.

Earnings trend

Quarterly revenue · Operating profit

₩74.6B₩8B25Q2₩83.1B₩9.8B25Q3₩80.5B₩4.2B25Q4₩68.1B₩3.6B26Q1₩79.6B₩7.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩274B₩23.2B2022₩292.1B₩20.5B2023₩308.3B₩31.6B2024₩309.1B₩26.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩74.6B	₩8B	10.7%
2025Q3	₩83.1B	₩9.8B	11.8%
2025Q4	₩80.5B	₩4.2B	5.2%
2026Q1	₩68.1B	₩3.6B	5.3%
2026Q2	₩79.6B	₩7.2B	9.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩274B	₩23.2B	₩21.9B	8.5%	8.0%	47.4%
2023	₩292.1B	₩20.5B	₩18.9B	7.0%	7.1%	58.2%
2024	₩308.3B	₩31.6B	₩39.2B	10.3%	15.0%	62.5%
2025	₩309.1B	₩26.8B	₩24.2B	8.7%	8.3%	62.0%

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

Earnings analysis

On a consolidated basis, annual revenue rose steadily from KRW 274.0bn in 2022 to KRW 292.1bn in 2023, KRW 308.3bn in 2024, and KRW 309.1bn in 2025.

Operating profit, however, showed more volatility: after dipping to KRW 23.2bn in 2022 and KRW 20.5bn in 2023, it recovered to KRW 31.6bn (a 10.3% margin) in 2024 before falling back to KRW 26.8bn (an 8.7% margin) in 2025.

Net profit attributable to owners similarly declined from KRW 39.2bn in 2024 to KRW 24.2bn in 2025, a move partly attributable to the base effect from a one-off gain recognized in 2024.

On a quarterly basis, revenue peaked at KRW 83.1bn with operating profit of KRW 9.8bn in the third quarter of 2025, before revenue held at roughly KRW 80.5bn in the fourth quarter even as operating profit fell sharply to KRW 4.2bn, while net profit attributable to owners actually rose to KRW 8.9bn, illustrating a divergence between operating results and bottom-line profit.

The first quarter of 2026 marked the weakest recent quarter, with revenue of KRW 68.1bn, operating profit of KRW 3.6bn, and net profit attributable to owners of KRW 1.4bn, a decline largely attributed to a seasonal demand gap tied to reduced respiratory infection activity.

The second quarter of 2026 showed a partial recovery, with revenue rebounding to KRW 79.6bn and operating profit rising to KRW 7.2bn.

Looking across the most recent four quarters (Q3 2025 through Q2 2026), the sizable quarter-to-quarter swings suggest a structure in which seasonality and one-off items repeatedly influence reported results.

Cash flow from operations followed a similar trajectory to net profit, surging from KRW 8.3bn in 2023 to KRW 38.2bn in 2024 before easing back to KRW 24.1bn in 2025.

Industry analysis

The domestic pharmaceutical industry is navigating structural growth from rising demand for geriatric and chronic disease treatments ahead of Korea's transition into a super-aged society, alongside policy risk stemming from potential reforms to the generic drug pricing system.

In particular, as the government discusses proposals to lower generic drug pricing ratios relative to originator drugs, companies such as Samjin Pharmaceutical that derive a large share of revenue from domestic generics and reimbursed medicines are viewed as relatively more sensitive to such policy shifts.

Across the industry, the shift of the growth axis toward new drugs and biologics has become more pronounced, with a growing recognition that a traditional generics-centered model alone cannot simultaneously lift profitability and corporate value.

Amid this backdrop, numerous mid-sized pharma companies are attempting business transformation through expanded new drug pipelines, open innovation, and entry into contract manufacturing (CMO) businesses.

In oncology and immunology, interest in new modalities such as antibody-drug conjugates (ADCs) is rising, and the period is seen as one of increasingly active licensing discussions with global big pharma.

That said, most domestic new drug development efforts remain in early clinical stages, implying substantial time and capital will be required before commercialization.

Competitively, Samjin holds a long-established position among mid-sized firms in domestic wholesale and hospital channels, but is viewed as exposed to policy risks similar to other traditional pharma companies with high generic drug dependence.

Outlook

The company has stated a plan to offset recent revenue declines and pursue profitability recovery through the launch of new oncology and central nervous system (CNS) products in 2026.

At its Osong plant, product approvals for normal injectable production are proceeding sequentially, with a company representative explaining that production output is expected to expand gradually as approvals are completed.

Expansion of co-promoted products such as the Norspan patch and the Fluad and Flucelvax vaccines is also cited as a factor for potential recovery.

On the new drug front, the chronic spontaneous urticaria candidate SJN314 has entered the development stage after an Investigational New Drug (IND) application was submitted to Korea's Ministry of Food and Drug Safety, with the company targeting early licensing-out (L/O) achievements within one to two years.

Regarding ADC payloads, the company has entered material transfer agreements (MTAs) with global pharmaceutical partners for testing, and management has suggested a potential ADC technology transfer within roughly three years.

The global Phase 3 trial for the oral Alzheimer's candidate AR1001, being co-developed with AriBio, is reported to be progressing with enrollment targets being met, and Samjin holds exclusive domestic manufacturing and distribution rights, creating expectations for a potentially significant product if the trial succeeds.

The company has also voluntarily disclosed a corporate value enhancement plan, making the direction of future shareholder return policy another item to monitor.

Valuation

PER

10.0×

PBR

0.8×

ROE

8.4%

EPS

₩1,870

BPS

₩24,265

Dividend per share

₩800

The current share price trades below the company's per-share net asset value, which can be viewed as a discount relative to book assets.

On the earnings side, net profit peaked in 2024 before declining through 2025, and after a pronounced earnings slowdown in the first quarter of 2026, results partially recovered in the second quarter, reflecting notable quarter-to-quarter volatility.

Over the past year, the share price appears to have moved through a fairly wide trading range, with the price-to-earnings multiple shifting alongside it.

On the shareholder return front, the company has continued cash dividends and recently decided to retire treasury shares, signaling a strengthening of shareholder return measures.

Since commercialization of the new drug and ADC pipeline remains at an early stage, market valuation appears to reflect both the stability of the existing generics business and the potential of the new drug assets simultaneously.

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

Bull factors

Licensing Potential from New Drug and ADC Pipeline

SJN314, now entering Phase 1 trials, has a stated target of early technology licensing within one to two years, while ADC payloads are also being tested through material transfer agreements with global pharmaceutical partners.

AR1001, co-developed with AriBio, is reported to be progressing smoothly in global Phase 3 dosing, and Samjin, which holds exclusive domestic distribution rights, could gain a significant product opportunity if commercialization succeeds.

If these assets translate into actual licensing deals or clinical success, the company's business portfolio structure could shift meaningfully.

Stable Cash Generation from OTC and Generics

Flagship products such as Geworin and Plavis, which have maintained market positions over an extended period, continue to underpin a substantial portion of revenue. Annual revenue showed a steady increase from 2022 through 2025, providing a funding base to support research and development investment in new drugs.

The company's long-established distribution network in wholesale and hospital channels also serves as a stable revenue foundation.

Manufacturing Infrastructure Expansion and CMO Business

Sequential product approvals for injectables at the Osong plant are expected to expand production output, and the resulting CMO business, together with the newly established oncology and pulmonary arterial hypertension units, has been presented as a way to convert fixed costs into revenue.

Expansion of research infrastructure, including the Magok central research center, is also underway and is expected to contribute to strengthening long-term R&D capabilities.

Bear factors

Generic Drug Pricing Reform Risk

With a substantial share of revenue estimated to come from the domestic generic and reimbursed drug market, government reform proposals aimed at lowering generic drug pricing ratios are under discussion. Some observers also note a lack of buffer to absorb policy shocks given the company's low export share. If such reforms are finalized, a meaningful portion of existing generic revenue could be affected.

Quarterly Earnings Volatility and Seasonality

First-quarter 2026 results saw both revenue and profit decline sharply due to a seasonal demand gap from reduced respiratory infection activity. In the fourth quarter of 2025, operating profit fell sharply even as net profit rose, illustrating a divergence between operating results and bottom-line figures. This volatility makes it difficult to judge underlying business trends from any single quarter's results.

Early-Stage Nature of the New Drug Pipeline

SJN314 is only at the early stage of entering Phase 1 trials, and the ADC platform remains at the material transfer agreement testing stage, leaving considerable time and clinical success uncertainty before commercialization.

Past disclosures have also indicated that many of the oncology pipeline candidates remain in early-stage development such as candidate screening, meaning the possibility that licensing or clinical outcomes fall short of expectations cannot be ruled out.

Risk factors

Policy Risk

Government discussions on reforming the generic drug pricing system are ongoing, and if finalized, could directly affect the revenue and profit structure of a company with high generic drug dependence.

The actual scale of impact will vary depending on the scope of exemptions, such as essential medicines or generics listed after 2012, meaning uncertainty will persist until a final plan is announced.

R&D Success Uncertainty

Most new drug assets, including SJN314, the ADC platforms, and AR1001, remain at early-to-mid clinical stages, leaving commercialization success uncertain.

If licensing negotiations fail to materialize within targeted timelines or clinical results fall short of expectations, returns relative to R&D investment could be limited.

Seasonal Demand Volatility

Quarterly sales volatility in respiratory-related treatment categories has been shown to fluctuate significantly depending on the extent of infection outbreaks. Such seasonality reduces the predictability of any single quarter's results and could also affect whether annual performance targets are met.

What to watch next

November 2026
The third-quarter 2026 earnings release will be a key opportunity to check whether the effects of new oncology and CNS product launches materialize and whether the second-quarter rebound continues.
Second half of 2026
Progress on SJN314's Phase 1 trial, results from the ADC platform's material transfer agreement testing, and any concrete progress in licensing discussions should be monitored.
Within 2026
Whether the government's proposed generic drug pricing ratio reform is finalized, and how its details could affect revenue and profit, should be checked.
Second half of 2026
Additional disclosures on the progress of dosing and data release timing for the AR1001 global Phase 3 trial, co-developed with AriBio, should be monitored.
Second half of 2026
Disclosures related to production infrastructure, including the sequential progress of injectable product approvals at the Osong plant and any CMO contract signings, should be monitored.

Overall view

Samjin Pharmaceutical has maintained stable revenue based on its long-established OTC and generic product lineup, including Geworin and Plavis, though operating and net profit have shown considerable volatility across years and quarters.

Consolidated revenue in 2025 held roughly steady versus the prior year, but the operating margin declined, and the first quarter of 2026 saw a pronounced earnings slowdown due to a demand gap in respiratory treatments, followed by a partial recovery in the second quarter.

The company has presented new oncology and CNS products, expanded Osong plant production, and a new CMO business as near-term catalysts, while positioning new drug assets such as SJN314, the ADC platforms, and AR1001 as its medium-to-long-term growth axis.

However, with a substantial share of revenue still dependent on the domestic generic and reimbursed drug market, discussions around government drug pricing reform remain a key variable, and most of the new drug pipeline remains at an early clinical stage requiring further time before commercialization.

From a valuation standpoint, shares trade at a discount to net asset value, alongside observed moves to strengthen shareholder returns such as treasury share retirement.

Going forward, the contribution of new products to sales, progress on new drug licensing, and the finalization of drug pricing reform are likely to serve as key indicators of whether the company's business restructuring succeeds.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.