PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
Korea Pharma, which posted a sizable operating loss in 2025, returned to operating and net profit for two consecutive quarters in early 2026, though its trailing four-quarter net result remains in the red.
Operating and net profit turned positive for two straight quarters in early 2026, passing the base effect of a large Q4 2025 loss
Premium generic and improved-drug strategy centered on CNS, gastrointestinal, cardiovascular prescription drugs and controlled-release CMO technology
Raised KRW 15 billion via a zero-coupon convertible bond in May 2026 for R&D and productivity investment, with no downside repricing clause
Pipeline expansion underway including a 24-hour extended-release ADHD drug, iron-deficiency treatment KP-01, and a long-acting donepezil injection
The debt ratio fell from 118.9% in 2022 to 57.3% in 2024 before rising again to 84.1% in 2025
Korea Pharma was founded in 1974, incorporated in 1985, and listed on KOSDAQ in 2020 as a prescription-drug manufacturer. Built on in-house R&D, its core business covers manufacturing and sales of central nervous system (CNS), gastrointestinal, cardiovascular, and antibiotic prescription drugs.
In the CNS segment, the company is expanding its lineup of ADHD treatments, anticonvulsants, antidepressants, and sleep aids, and has filed for approval of a 24-hour extended-release ADHD drug licensed from Taiwan's Orient Pharma.
Original and improved-generic drugs together with the CNS segment are described as high-barrier premium businesses that only a limited number of pharmaceutical companies can handle, potentially providing a stable earnings base once established.
The company is conducting a bridging clinical trial for the oral iron-deficiency treatment Accrufer (KP-01), licensed from UK-based Shield Therapeutics, aiming to differentiate itself given the small number of comparable products distributed domestically.
Leveraging drug-delivery-system (DDS) controlled-release technology and EU GMP certification, it also runs a CMO/CDMO business in cooperation with overseas partners.
More recently, it signed an exclusive distribution deal with a digital therapeutics specialist for what is described as the first domestic digital therapeutic device for pediatric ADHD, broadening its offering into non-drug treatment options.
Growth in recent revenue has been attributed to an established CSO sales network and an expanding share of prescription drugs.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩23.4B | ₩82,574,531 | 0.4% |
| 2025Q3 | ₩24B | ₩500M | 2.1% |
| 2025Q4 | ₩19.4B | -₩2.3B | −11.9% |
| 2026Q1 | ₩24.6B | ₩1.3B | 5.3% |
| 2026Q2 | ₩25.9B | ₩2.2B | 8.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩81B | ₩6.2B | -₩1.1B | 7.6% | −1.9% | 118.9% |
| 2023 | ₩83.2B | ₩6.3B | ₩83,763,705 | 7.5% | 0.1% | 76.9% |
| 2024 | ₩81.3B | ₩6.1B | ₩3.8B | 7.5% | 5.3% | 57.3% |
| 2025 | ₩87.6B | -₩900M | -₩2.6B | −1.0% | −3.8% | 84.1% |
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
Consolidated revenue rose to KRW 87.6 billion in 2025 from KRW 81.3 billion in 2024, but operating profit swung to a loss of KRW 0.89 billion from a profit of KRW 6.09 billion, and net profit attributable to owners fell to a loss of KRW 2.64 billion.
The annual operating margin, which had held at 7.5-7.6% from 2022 through 2024, dropped sharply to -1.0% in 2025.
On a quarterly basis, profitability was already weak in Q2 2025 (revenue KRW 23.39 billion, operating profit KRW 0.08 billion, net loss KRW 0.38 billion), and improvement was limited in Q3 (revenue KRW 24.0 billion, operating profit KRW 0.51 billion, net loss KRW 0.02 billion).
Q4 saw revenue slip to KRW 19.4 billion while the operating loss widened to KRW 2.31 billion and the net loss to KRW 2.76 billion, driving the bulk of the full-year deterioration.
However, Q1 2026 turned profitable with revenue of KRW 24.6 billion, operating profit of KRW 1.31 billion, and net profit of KRW 0.68 billion, and Q2 2026 extended the improvement with revenue of KRW 25.9 billion, operating profit of KRW 2.16 billion, and net profit of KRW 1.32 billion.
As a result, the trailing four-quarter (Q3 2025-Q2 2026) net profit attributable to owners stands at a loss of KRW 0.77 billion — still negative, but the recent two quarters have offset much of the large Q4 2025 loss.
In 2023, revenue of KRW 83.2 billion and operating profit of KRW 6.27 billion produced net profit of only KRW 0.08 billion, suggesting non-operating or one-off items played a role, and a similar pattern appeared in 2022 when an operating profit of KRW 6.19 billion coincided with a net loss of KRW 1.12 billion.
Total equity rose from KRW 59.8 billion in 2022 to KRW 71.4 billion in 2024 before slipping to KRW 68.8 billion in 2025, while the debt ratio fell from 118.9% in 2022 to 57.3% in 2024 before climbing back to 84.1% in 2025.
The domestic prescription-drug market continues moderate growth driven by expanding treatment of chronic and psychiatric conditions in CNS, gastrointestinal, and cardiovascular categories, with numerous small and mid-cap pharmaceutical companies competing to grow scale through licensed-in products and expanded generic sales.
Venture-capital database THE VC recently noted in an industry analysis that several small and mid-cap pharma companies, including Korea Pharma, have grown in scale through expanded licensing but have become more dependent on distributed products and consignment manufacturing.
The ADHD treatment market is reported to be a near-monopoly in which a single product holds more than 60% share, making entry barriers high for latecomers while offering the potential for a stable share if a differentiated formulation gains traction.
Raw-material and excipient cost pressure is a variable affecting profitability across the industry, and was cited as a factor behind the sharp decline in operating and net profit despite revenue growth in Korea Pharma's cumulative Q3 2025 standalone results.
Competitors are also pursuing differentiation through EU GMP certification, CMO/CDMO operations, and DDS-based specialty formulations, intensifying technology-based competition.
In the United States, regulatory reform discussions aimed at shortening the Phase 1 clinical-trial entry process are reportedly underway, a development that could affect the pace of overseas clinical programs pursued by domestic pharmaceutical companies.
On May 20, 2026, Korea Pharma's board approved the issuance of a KRW 15 billion zero-coupon convertible bond (5th issue), structured with no downside repricing clause to limit dilution risk for existing shareholders.
Proceeds are earmarked for R&D and productivity improvements, with a long-acting donepezil injection for Alzheimer's disease — jointly developed with G2GBio and currently in Phase 1 — cited as a key project.
The company has filed for approval of the 24-hour extended-release ADHD drug Methyduor, aiming to challenge a near-monopolized ADHD market, and the approval timeline is a key variable for future revenue contribution.
The iron-deficiency treatment KP-01 (Accrufer) has received an amended approval for its bridging clinical trial plan, signaling an effort to accelerate its clinical pace.
Several CNS pipeline products — including anticonvulsants, antidepressants, and an Alzheimer's treatment — are in the approval or preparation stage, and sequential approvals and launches could gradually increase the share of premium products in revenue.
The company is also expanding into non-drug treatment through an exclusive domestic distribution agreement for the pediatric ADHD digital therapeutic device Starlucas, building out a nationwide distribution network across medical institutions.
With profitability confirmed for two consecutive quarters in early 2026, cost and SG&A management along with expansion of the CSO sales network in the second half will be key variables determining whether the improvement continues.
With a net loss recorded for full-year 2025 and the trailing four-quarter net result still negative, earnings-based valuation metrics remain constrained in their interpretive value at this time.
Book-value-based metrics, by contrast, show the shares trading at a modest premium to net asset value, suggesting the market has not applied either a deep discount or a large premium relative to the company's equity base.
Given that profitability was confirmed for two consecutive quarters in Q1 and Q2 2026, whether this trend continues in coming quarters will be a key variable for valuation going forward.
The company has a history of paying a dividend at a modest level each year, though given the volatility in net profit, dividend continuity may depend on future earnings stability.
Operating margin over recent years moved from around 7% to a loss and then showed signs of recovery, and this trajectory itself is a useful starting point for interpreting the metrics ahead.
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
Following Q1 2026 operating profit of KRW 1.31 billion and net profit of KRW 0.68 billion, Q2 2026 posted operating profit of KRW 2.16 billion and net profit of KRW 1.32 billion, marking a recovery from the large Q4 2025 loss.
Revenue has also risen sequentially from KRW 19.4 billion in Q4 2025 to KRW 25.9 billion in Q2 2026. Whether this trend persists through the second half is a key point to watch.
New CNS products including ADHD drugs, anticonvulsants, antidepressants, and an Alzheimer's treatment are in the approval or preparation stage, with sequential launches expected. The 24-hour extended-release ADHD drug targets differentiation in a domestic market with a near-monopoly structure.
A strategy focused on original and improved-generic drugs, an area few pharma companies can handle, is cited as a strength given the high entry barriers.
The KRW 15 billion convertible bond issued in May 2026 carries a 0% coupon and maturity rate with no downside repricing clause, lowering both interest burden and further dilution concerns. Proceeds are earmarked for R&D and productivity improvement. The put option exercise date is also set 30 months after issuance, reducing near-term repayment pressure.
Cumulative net profit attributable to owners from Q3 2025 through Q2 2026 stands at a loss of KRW 0.77 billion, still in negative territory despite improvement in the most recent two quarters. The Q4 2025 net loss of KRW 2.76 billion continues to weigh heavily on the trailing figure. Whether continued profitability turns this cumulative figure positive is a point to monitor.
The debt ratio fell to 57.3% in 2024 but rose again to 84.1% in 2025. On top of this, an additional KRW 15 billion convertible bond was issued in May 2026, adding to repayment- and conversion-related liabilities.
The potential exercise of put options on existing unredeemed convertible bonds is another variable requiring ongoing management.
Full-year 2025 operating margin fell sharply to -1.0% from the mid-7% range seen in 2022-2024. Standalone cumulative results through Q3 2025 also showed revenue growth accompanied by a sharp decline in operating and net profit due to cost pressure. Fluctuations in raw-material and excipient prices could continue to affect margins going forward.
Annual net profit has swung repeatedly — a loss in 2022, a small profit in 2023, a profit in 2024, and a loss again in 2025. Recurring gaps between operating profit and net profit suggest the results are influenced by non-operating factors. One-off items in any given quarter could continue to sway the overall trend going forward.
Multiple pipeline candidates — including ADHD, Alzheimer's, and iron-deficiency treatments — remain in clinical or approval review stages, and delays or failures could postpone or eliminate expected revenue contributions.
The long-acting donepezil injection is still at the Phase 1 stage, requiring substantial time and further trials before commercialization.
The company is understood to have multiple outstanding convertible bonds including the new KRW 15 billion issue, and conversion requests could lead to share dilution from an increased share count.
The potential exercise of put options on existing unredeemed convertible bonds is another variable that could pressure liquidity.
Check whether Q3 2026 results extend the operating and net profit turnaround for a third consecutive quarter following Q1 and Q2, and whether the trailing four-quarter net profit turns positive.
Watch for the outcome of the domestic approval review and launch schedule for the 24-hour extended-release ADHD drug Methyduor.
Monitor progress of the KP-01 (Accrufer) bridging clinical trial and further clinical advancement of the Phase 1 long-acting donepezil injection.
This marks the start of conversion rights for the KRW 15 billion convertible bond issued in May 2026; check for potential dilution depending on the share price relative to the conversion price.
After a large operating and net loss in 2025, Korea Pharma confirmed a profit turnaround for two consecutive quarters in Q1 and Q2 2026. However, the trailing four-quarter net result remains negative, so it is premature to conclude that the Q4 2025 loss's base effect has been fully offset.
The company clearly continues expanding into CNS, gastrointestinal, and cardiovascular prescription drugs, a premium CNS pipeline, and digital therapeutics, but multiple pipeline candidates remain in clinical or approval review stages, meaning commercialization will take time.
The debt ratio fell to 57.3% in 2024 before rising back to 84.1% in 2025, and the additional convertible bond issued in May 2026 adds to the ongoing challenge of managing the balance sheet.
Whether upcoming quarterly results sustain the recent profitability trend, and how key pipeline approvals and clinical progress unfold, are likely to be the central variables shaping the company's direction going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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