KOSPIBiotech & Pharma017180

Myungmoon Pharm

₩1,277▲ 0.79%2026-10-02 close

Market Cap

₩43.2B

Turnover

₩58,938,771

Volume

50,000 shares

Shares out.

34M

PER

—

PBR

0.4×

EPS

-₩49

Dividend Yield

0.00%

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

Report overview

Record Revenue, But Profit Momentum Wavers Again

Myungmoon Pharm posted a record consolidated revenue of KRW 195.2 billion in 2025 and swung back to a net profit, but operating and net income turned negative again in early 2026, leaving questions about the durability of the earnings recovery.

1
2025 consolidated revenue hit a record KRW 195.2bn (+4.7% YoY), with operating profit improving sharply to KRW 6.8bn
2
Operating and net losses returned in both Q1 and Q2 2026, and the trailing four-quarter (2025Q3-2026Q2) sum of owner net income is negative
3
Cholesterol drug Rojet is driving revenue growth, while hair-loss drug Damocare targets more than double its prior-year sales via expanded Japan and Hong Kong exports
4
The debt ratio has fluctuated between roughly 140-167%, and operating cash flow has been negative in three of the last four years
5
Second-generation owner Chairman Woo Seok-min and other executives have been buying shares, while the company separately distributed treasury shares to employees who contributed to the profit turnaround

Business structure

Founded in 1983 and listed on the KOSPI in 2008, Myungmoon Pharm is a mid-tier pharmaceutical company that first gained recognition for Kimite, Korea's first transdermal patch product.

Today it sells both prescription and over-the-counter drugs, centered on chronic disease treatments for hypertension, diabetes, hyperlipidemia and dementia.

On a standalone basis, the share of proprietary product sales in total revenue has risen steadily, from 67.3% in 2022 to 73.6% in 2024, indicating growing contribution from self-manufactured products relative to distributed goods.

Its flagship hyperlipidemia drug Rojet has been a core growth driver, with sales rising from over KRW 10 billion in 2022 to KRW 16.5 billion in 2024.

Hair-loss treatment Damocare (finasteride 1mg) generated roughly KRW 1.5 billion in 2025 sales, split between KRW 1.15 billion domestic and KRW 0.35 billion export, and the company is cultivating it as a new growth item.

Through subsidiary Myungmoon Development, the firm also operates golf course and real estate businesses, diversifying revenue beyond pharmaceuticals.

The company completed a KGMP-certified second plant in the Hyangnam industrial complex in Hwaseong in 2018, and in 2024 subsidiary Myungmoon Bio obtained GMP certification aimed at stabilizing production supply.

However, R&D spending has remained in the low-2% range of revenue, and the R&D structure is seen as concentrated on generics and modified new drugs.

Earnings trend

Quarterly revenue · Operating profit

₩48.8B₩5.7B25Q2₩49.9B₩500M25Q3₩50.8B₩1.6B25Q4₩48B₩300M26Q1₩51.2B-₩800M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩152.1B₩6.4B2022₩169.6B₩1B2023₩186.4B₩1.9B2024₩195.2B₩6.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩48.8B	₩5.7B	11.6%
2025Q3	₩49.9B	₩500M	0.9%
2025Q4	₩50.8B	₩1.6B	3.2%
2026Q1	₩48B	₩300M	0.6%
2026Q2	₩51.2B	-₩800M	−1.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩152.1B	₩6.4B	₩8B	4.2%	8.9%	141.9%
2023	₩169.6B	₩1B	-₩4.9B	0.6%	−5.8%	166.5%
2024	₩186.4B	₩1.9B	-₩3B	1.0%	−3.1%	150.2%
2025	₩195.2B	₩6.8B	₩1.9B	3.5%	1.9%	160.8%

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

Earnings analysis

Consolidated revenue reached KRW 195.2 billion in 2025, up 4.7% from KRW 186.4 billion in 2024, while operating profit improved sharply to KRW 6.8 billion from KRW 1.9 billion, lifting the operating margin from 1.0% to 3.5%.

Owner net income turned positive at KRW 1.9 billion, reversing two consecutive years of losses in 2023 (-KRW 4.9 billion) and 2024 (-KRW 3.0 billion).

Quarterly trends, however, have been uneven: operating profit was unusually large at KRW 5.68 billion in Q2 2025, then plunged to KRW 0.45 billion in Q3 with a net loss of KRW 0.55 billion.

Q4 2025 returned to profit with operating income of KRW 1.61 billion and net income of KRW 0.94 billion, but Q1 2026 operating profit shrank to KRW 0.29 billion with a net loss of KRW 0.80 billion.

In Q2 2026, despite revenue of KRW 51.2 billion, the operating loss widened to KRW 0.84 billion and the net loss to KRW 1.26 billion.

As a result, the sum of owner net income over the trailing four quarters from Q3 2025 through Q2 2026 stands at a net loss of KRW 1.67 billion, meaning the full-year 2025 profit turnaround has been diluted by renewed losses in the most recent quarters.

On the balance sheet, the debt ratio rose from 141.9% in 2022 to 166.5% in 2023, and has stayed elevated at 150.2% in 2024 and 160.8% in 2025, while operating cash flow was negative for three straight years in 2023 (-KRW 5.18 billion), 2024 (-KRW 1.34 billion) and 2025 (-KRW 1.70 billion) apart from a positive figure in 2022 (+KRW 5.47 billion), pointing to a gap between accounting profit and actual cash generation.

Industry analysis

Korea's pharmaceutical industry continues modest growth, driven by rising demand for chronic disease treatments amid an aging population, alongside expanding prescription categories such as GLP-1 obesity drugs.

However, small and mid-cap generic-focused pharma companies face an increasingly demanding environment for new product approvals and price competitiveness amid government drug pricing reforms and tighter bioequivalence testing regulations.

Myungmoon Pharm trails top-tier players such as Yuhan Corporation, GC Biopharma and Chong Kun Dang in scale, and competes at a similar size with mid-tier peers including Dong-A ST's Donggu Biopharma, Shinshin Pharm, Samik Pharm, Hyundai Pharm and Joa Pharm.

Compared with these peers, Myungmoon Pharm is distinguished by holding a mix of cardiovascular and metabolic disease treatments, a hair-loss drug, and non-pharmaceutical businesses such as a golf course operation.

Its overseas sales exposure is reported to remain low, so the planned expansion of Damocare exports to Japan and Hong Kong is still at an early stage in contributing to geographic diversification.

Amid an industry-wide trend of rising R&D intensity, Myungmoon Pharm's R&D spending in the low-2% range of revenue is viewed as below the industry average.

Outlook

The company has set a 2026 sales target of KRW 3.5 billion for Damocare, more than double the KRW 1.5 billion recorded in 2025, and stated it has already completed a domestic supply contract worth KRW 2.5 billion (52 batches) with distribution partner CS Wellbio, with a smaller supply arrangement also planned with Innojin.

Overseas, it said a Japan supply deal of roughly USD 300,000 covering 10 batches for 2026 is at the confirmation stage and could expand to 15-20 batches depending on negotiations, while a Hong Kong supply of USD 170,000 across 8 batches is also planned.

Rojet's cumulative nine-month sales rose from KRW 14.6 billion in 2024 to KRW 15.8 billion in 2025, and whether the trend of rising product sales mix continues will be a key point to watch.

That said, reports have noted that operating hours at the Hyangnam plant have remained largely flat year-over-year, so it remains to be seen when expanded CAPEX translates into actual capacity gains and sales.

A company representative said new drug development and manufacturing technology upgrades are under review as growth initiatives, but gave no specific disclosure timeline.

With consecutive losses in Q1 and Q2 2026, second-half performance is likely to be a key test of whether the full-year profit turnaround can be sustained.

Valuation

PER

—

PBR

0.4×

ROE

-1.7%

EPS

-₩49

BPS

₩2,885

Dividend per share

₩0

According to one media compilation, Myungmoon Pharm's price-to-book ratio moved from 1.08x in 2022 to 0.92x in 2023 and 0.57x in 2024, suggesting the stock has traded at a widening discount to net asset value over time.

The company is understood to have paid no dividends in recent years, which places the focus of investor discussion more on earnings improvement than on dividend appeal.

The return to losses in the first half of 2026, despite the full-year 2025 profit turnaround, is a factor that can weigh on how the discount to book value is interpreted, given uncertainty over earnings durability.

Share purchases by management and the controlling shareholder, together with the treasury-share distribution to employees, reflect ongoing shareholder-related actions, but whether these events translate into a fundamental improvement in the earnings structure is something that will need to be confirmed through coming quarterly results.

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

Bull factors

Expanding Product Mix and Rojet Growth

Standalone product sales mix rose steadily from 67.3% in 2022 to 73.6% in 2024, with flagship hyperlipidemia drug Rojet growing from over KRW 10 billion in 2022 to KRW 16.5 billion in 2024.

This trend continued into nine-month cumulative sales of KRW 15.8 billion in 2025, showing that the company's proprietary product competitiveness has become a pillar of revenue growth. This improving product mix underpinned the record annual revenue of KRW 195.2 billion in 2025.

Planned Export Expansion for Damocare

Hair-loss drug Damocare is targeted to more than double sales from KRW 1.5 billion (KRW 1.15bn domestic, KRW 0.35bn export) in 2025 to KRW 3.5 billion in 2026.

The company said a Japan supply deal of about USD 300,000 covering 10 batches is at the confirmation stage and could expand to 15-20 batches depending on negotiations, while a Hong Kong supply worth USD 170,000 is also planned.

Domestically, a KRW 2.5 billion supply contract with distribution partner CS Wellbio has already been completed.

Executive/Owner Share Purchases and Employee Compensation

Executives including second-generation owner Chairman Woo Seok-min have purchased shares on the open market, signaling committed ownership, with the chairman raising his stake to 19.06%.

Separately, following a plan approved at the March 2026 annual general meeting, the company distributed treasury shares to 298 employees who contributed to the profit turnaround, an internal motivation measure.

These moves are seen as an attempt by management to demonstrate confidence in the company's direction to the market.

Bear factors

Renewed Losses in Recent Quarters

Both Q1 and Q2 2026 posted operating and net losses, and in Q2 the operating loss widened to KRW 0.84 billion even as revenue rose to KRW 51.2 billion. The sum of owner net income over the trailing four quarters from Q3 2025 to Q2 2026 is a net loss of KRW 1.67 billion.

This suggests the 2025 full-year profit turnaround may have relied heavily on a single strong quarter (Q2 2025 operating profit of KRW 5.68 billion).

Elevated Debt Ratio and Negative Operating Cash Flow

The debt ratio rose to 166.5% in 2023 and has remained elevated at 160.8% in 2025. Operating cash flow was negative for three straight years from 2023 to 2025, excluding 2022, indicating a gap between improving income-statement profit and actual cash generation. This is a point to monitor from the perspective of future investment funding and financial stability.

Low R&D Intensity and Delayed Capacity Expansion

R&D spending has stayed in the low-2% range of revenue, and the company's R&D is seen as concentrated on generics and modified new drugs.

According to one media report, despite a 418.5% year-over-year increase in capital expenditure, operating hours at the Hyangnam plant actually declined slightly, prompting criticism that CAPEX expansion has not translated into visible capacity gains.

Questions have also been raised about the execution of a growth strategy that touts new drug development, manufacturing, and global expansion.

Risk factors

Drug Pricing Policy and Generic Dependence Risk

A product structure centered on generics and modified new drugs carries a structural risk that government drug pricing reforms or tighter bioequivalence testing rules could make it harder to secure new approvals and price competitiveness.

With R&D investment below the industry average, the company's ability to respond to regulatory changes may be limited.

Earnings Volatility and Profit Sustainability

As seen in the large operating profit in Q2 2025, the sharp slowdown from Q3 onward, and consecutive losses in the first half of 2026, quarter-to-quarter earnings swings have been substantial.

If dependence on specific items or one-off factors remains high, there is a possibility that the full-year profit turnaround may not persist and could revert to losses.

Governance and Management Credibility Risk

Amid the transition to second-generation ownership, the market continues to pay attention to the control structure, and some media have raised questions about whether executive share purchases translate into substantive execution of growth strategy.

The lack of concrete disclosure on new drug development or manufacturing upgrade plans also remains a variable for building investor confidence.

What to watch next

Around November 2026 (expected Q3 quarterly report filing)
Check whether Q3 2026 results break the streak of first-half losses and whether the trailing four-quarter net income turns positive.
Q4 2026 (checkpoint against annual target)
Verify whether Damocare's 2026 sales target of KRW 3.5 billion is achieved and whether the actual number of supply batches to Japan and Hong Kong expands as outlined.
Filing of the 2026 annual business report (early 2027)
Check whether operating hours at the Hyangnam plant and production capacity improve relative to CAPEX, and whether the annual R&D spending ratio changes.
Ongoing disclosure monitoring in H2 2026
Monitor for any additional disclosures of executive or controlling-shareholder share purchases or disposals, and any resulting changes in ownership stake.

Overall view

Myungmoon Pharm achieved record annual revenue and a return to profit after two years of losses in 2025, driven by an expanding product sales mix and growth in Rojet, but operating and net income turned negative again in the first half of 2026, leaving the trailing four-quarter sum in a net loss.

The planned expansion of Damocare exports to Japan and Hong Kong is presented as a new growth driver but remains at an early stage of realization, and there are reports that capacity gains at the Hyangnam plant have not yet materialized clearly.

An elevated debt ratio in the 150-167% range and multi-year negative operating cash flow are points that warrant continued attention from a financial soundness perspective.

Share purchases by management and the second-generation owner, along with the treasury-share distribution to employees, reflect ongoing shareholder- and organization-related actions, but whether these translate into a fundamental improvement in the earnings structure will need to be judged through future quarterly results.

Overall, positive factors such as revenue growth and new-product export expansion coexist with negative factors including earnings volatility, financial structure, and limited R&D investment. Investors will need to watch both the results from Q3 2026 onward and the actual execution of Damocare's export plans.

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.