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
CMG Pharmaceutical faces both a listing-maintenance risk from its administrative-issue designation and the launch of its Pangyo CGB new business at the same time.
The company was designated an administrative issue on August 13, 2026 after trading below KRW 1,000 for 30 consecutive sessions, and is responding with a 10-to-1 share consolidation.
Operating profit swung between gains and losses over the trailing four quarters (2025Q3-2026Q2), with net income also showing sharp quarterly fluctuations.
The schizophrenia treatment 'Mezopi' (aripiprazole ODF) has obtained US FDA product approval as the company prepares to enter the US market.
The CGB cell and gene therapy CDMO facility being built with CHA Biotech and CHA Cares in Pangyo Techno Valley II is targeted for completion and operation during 2026.
Full-year 2025 operating profit and net income turned negative, and the company is not paying a dividend.
CMG Pharmaceutical is a pharmaceutical affiliate of CHA Bio Group, primarily engaged in the manufacture and production of prescription (ETC) and over-the-counter (OTC) drugs, as well as R&D for improved and new drugs.
According to previously disclosed data, prescription drugs accounted for the largest share of product sales, with OTC, health supplements, and medical devices making up the remainder.
The company holds a patented oral dissolving film (ODF) manufacturing technology called Starfilm Technology, which it has used to launch ODF products such as an erectile dysfunction treatment and a hepatitis B treatment.
More recently, this technology underpins 'Mezopi' (aripiprazole), an improved schizophrenia drug that has obtained US FDA product approval, and the company is preparing to select a local distribution partner and launch in the United States by the second half of the year.
In new business lines, the company has expanded into anti-aging, ophthalmology, consumer healthcare, medical devices, Mom&Baby, and animal medicine, and has recently pursued health-and-beauty exports to Southeast Asia.
The largest structural shift is its entry into cell and gene therapy (CGT) CDMO, where CMG Pharmaceutical is building the CGB (Cell Gene Bioplatform) production facility in Pangyo Techno Valley II through a consortium with CHA Biotech (50%), CMG Pharmaceutical (40%), and CHA Cares (10%).
CGB is designed as the largest single facility in the cell and gene therapy field, with 10 floors above ground and 4 below, spanning approximately 66,115 square meters.
Once completed, it will be capable of simultaneously producing cell and gene therapies, mRNA, viral vectors, and plasmid DNA in a single building, through which CMG Pharmaceutical aims to broaden its business scope from chemical drugs into biologics.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩22.7B | -₩4.6B | −20.3% |
| 2025Q3 | ₩30.4B | ₩1.2B | 4.0% |
| 2025Q4 | ₩31.5B | ₩1B | 3.3% |
| 2026Q1 | ₩25.5B | -₩2.9B | −11.5% |
| 2026Q2 | ₩28.3B | -₩3B | −10.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩82.2B | ₩3B | -₩400M | 3.6% | −0.2% | 15.3% |
| 2023 | ₩93.9B | ₩3B | ₩6.5B | 3.2% | 3.4% | 27.3% |
| 2024 | ₩99.1B | ₩1B | ₩2.7B | 1.0% | 1.4% | 60.1% |
| 2025 | ₩105.2B | -₩3.7B | -₩10.1B | −3.5% | −5.0% | 51.8% |
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
CMG Pharmaceutical's annual revenue rose steadily from KRW 82.197 billion in 2022 to KRW 93.907 billion in 2023, KRW 99.100 billion in 2024, and KRW 105.229 billion in 2025. Profitability, however, moved in the opposite direction.
Operating profit was stable at KRW 2.981 billion (3.6% margin) in 2022 and KRW 3.037 billion (3.2%) in 2023, but fell sharply to KRW 1.020 billion (1.0%) in 2024 before turning negative at KRW -3.692 billion (-3.5% margin) in 2025.
Owners' net income also swung from gains of KRW 6.455 billion in 2023 and KRW 2.695 billion in 2024 to a loss of KRW 10.077 billion in 2025. Quarterly results show pronounced volatility.
The second quarter of 2025 was the weakest period, with revenue of KRW 22.669 billion, an operating loss of KRW 4.606 billion, and a net loss of KRW 10.891 billion, before a sharp turnaround in the third quarter of 2025 to revenue of KRW 30.402 billion, operating profit of KRW 1.206 billion, and net income of KRW 5.728 billion.
Yet in the fourth quarter of 2025, despite maintaining operating profit of KRW 1.037 billion, net income reversed to a loss of KRW 3.333 billion, suggesting non-operating items had a substantial impact on the bottom line.
Into 2026, operating profit remained negative for two consecutive quarters at KRW -2.922 billion in the first quarter and KRW -2.951 billion in the second, while net income stayed modestly positive at KRW 0.113 billion and KRW 2.132 billion respectively.
This divergence between operating profit and net income points to cost burdens from new-business investments such as CGB combined with equity-method and other non-operating gains, and on the cash flow side, full-year 2025 operating cash flow registered a net outflow of KRW 11.020 billion, contrasting with the net inflows seen in 2023-2024.
The cell and gene therapy (CGT) CDMO market is regarded as a core growth axis for the upstream industry.
One brokerage report projected that the global CGT CDMO market would grow from USD 1.5 billion in 2019 to USD 10.1 billion by 2026, an average annual growth rate of 31.1%, noting that while roughly 20% of conventional biologics production such as antibodies is outsourced to CDMOs, more than 50% of cell and gene therapy production relies on CDMO services, pointing to structural demand.
Policy support has also come into focus, as the CDMO special act is designed to streamline procedures through export-manufacturing registration, GMP certification system improvements, and expanded pre-consultation and technical advisory services, with government officials expecting the transition-to-operation timeline to be shortened by at least two months.
Domestically, CHA Biotech is seeking to build a three-site production network spanning Korea, Asia, and the United States through Matica Bio Technology (US), CHA Bio Lab (Korea), and CGB (Pangyo), with CGB expected to serve as the Asian production base while Matica Bio targets the North American market.
However, CGB construction has a history of delays relative to original plans, leaving the actual operation timeline and the pace of customer acquisition as key variables for gauging the CDMO business's performance.
In the traditional pharmaceutical segment, amid intensifying domestic generic and improved-drug competition, CMG Pharmaceutical's ODF formulation technology stands out as a differentiation point being leveraged for overseas expansion.
The company's most pressing near-term task is meeting listing-maintenance requirements.
CMG Pharmaceutical was designated an administrative issue after its share price stayed below KRW 1,000 for 30 consecutive trading sessions, and as a countermeasure it resolved a 10-to-1 share consolidation at an extraordinary general meeting, planning a trading halt from October 1-26 followed by a re-listing on October 27.
Under exchange rules, an administrative-issue designation is lifted the day after the share price stays at or above KRW 1,000 for 45 consecutive trading sessions within 90 trading sessions of the designation, making it critical to watch whether the consolidation alone can sustain the post-split share price over the coming months.
On the business side, two growth threads are underway.
First is Mezopi's US market entry: the company plans to select a local distribution partner by the second half of the year and fully launch Mezopi in 2026, targeting more than KRW 100 billion in annual sales within five years, a goal supported by the fact that the US schizophrenia treatment market is the largest in the world with roughly 2.8 million patients.
Second is the CGB new business, where CHA Biotech has stated it plans to build a K-Bio CIC open-innovation center inside CGB and fully operate it from the second half of 2026, with the CDMO production facility also expected to approach an operational countdown around the same period.
That said, industry observers caution that if clinical progress, licensing deals, or sales expansion fail to materialize after the consolidation, the share price could decline again, a point worth bearing in mind.
CMG Pharmaceutical's price-to-book ratio sits below 1x, placing it in a discount range relative to net assets, a pattern that can be read as reflecting both the earnings volatility of recent years and the administrative-issue designation.
Net income has swung between profit and loss on an annual basis, and even the trailing four-quarter aggregate carries the imprint of sharp individual-quarter swings, warranting caution in relying on the price-to-earnings ratio alone.
The company has not recently paid a dividend, leaving limited appeal from a yield perspective.
With a scheduled share consolidation tied to the coin-stock issue, it is also worth noting that the per-share price itself will be mechanically rebased around the consolidation date, a factor to keep in mind when interpreting valuation metrics.
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
Mezopi's US FDA product approval has brought the world's largest schizophrenia treatment market within reach.
The company has set a target of more than KRW 100 billion in annual sales within five years alongside partner selection, offering an opportunity to diversify overseas revenue sources through its differentiated ODF formulation technology.
CGB, being built in Pangyo with CHA Biotech and CHA Cares, is the largest single production facility in the cell and gene therapy field, and once completed could broaden the business from chemical drugs into biologics.
Policy support such as the CDMO special act is cited as a factor that could accelerate the operational transition timeline, and the K-Bio CIC open-innovation center could also help secure potential customers.
Net income turned positive in the third quarter of 2025 and both quarters of 2026 so far, moving away from the large loss recorded in the second quarter of 2025. Revenue has also risen every year since 2022. Should new-business investment burdens ease, there is room for earnings improvement.
The stock was designated an administrative issue after trading below KRW 1,000 for 30 consecutive sessions, and failure to recover to KRW 1,000 or above for 45 consecutive sessions within 90 trading days could lead to delisting.
Industry observers note that share consolidation alone does not automatically restore corporate value, and side effects such as margin trading restrictions and institutional investor avoidance could also follow.
After operating profit turned negative for full-year 2025, the company posted consecutive operating losses in the first and second quarters of 2026. Revenue is growing, but cost and expense burdens appear to be offsetting the gains.
The positive net income seen in some quarters appears driven by non-operating items, which may not be sustainable without a recovery in core operating profitability.
Pangyo CGB has a history of extended completion deadlines, so whether the completion and operation timeline holds as planned bears watching.
Refinancing burdens on convertible bonds tied to large-scale facility investment have also been raised, and there could be a time lag before new-business investment translates into results.
Failure to meet share-price requirements within the designated period following an administrative-issue designation could lead to delisting procedures.
The core risk is that market-assigned corporate value may not automatically recover after consolidation, and similar cases have seen share prices decline again post-split.
The gap between operating profit and net income is wide, with sharp quarterly swings that raise uncertainty around future earnings forecasts.
Core profitability recovery could be delayed while new-business investment costs persist, and net income fluctuations driven by non-operating items warrant scrutiny from a sustainability standpoint.
CGB's completion timeline has already been extended in the past, so the possibility of further delay cannot be ruled out.
Mezopi's US launch could also be affected by external variables such as distribution partner selection and the tariff and regulatory environment, and financing burdens from large-scale facility investment could affect the financial structure.
Following the trading halt (October 1-26) for the 10-to-1 share consolidation, re-listing occurs on October 27, and it will be important to check whether the post-consolidation reference price holds.
Depending on whether the 45-consecutive-trading-day, KRW-1,000-or-above requirement is met within 90 trading days of the August 13, 2026 administrative-issue designation, the stock could either be released from administrative-issue status or move toward delisting procedures.
Third-quarter 2026 results will be released, offering a chance to check whether the company breaks its two-quarter streak of operating losses and whether revenue growth is sustained.
The completion of the Pangyo CGB facility and the start of K-Bio CIC operations, along with the selection of a US distribution partner and launch of Mezopi, should be monitored.
CMG Pharmaceutical has seen operating losses persist through the first half of 2026 following the shift to negative operating profit and net income in 2025, with the listing-maintenance issue tied to its administrative-issue designation emerging as the most pressing near-term variable.
A response through a 10-to-1 share consolidation is underway, and whether share-price requirements are met after the October re-listing will be the key thing to watch over the coming months.
On the business side, two growth drivers are progressing simultaneously: Mezopi's US market entry and the operational launch of the Pangyo CGB CDMO facility, and the timing and scale at which these translate into actual sales and profit will likely shape the medium-to-long-term direction.
Net income over the trailing four quarters showed sharp swings driven by non-operating items, making it difficult to gauge a stable recovery in core profitability. The price-to-book ratio trades at a discount to net assets, which can be read as reflecting both earnings uncertainty and listing-maintenance risk together.
Investors should sequentially track the resolution of the administrative-issue status, the new-business operational timeline, and quarterly operating profit trends.
Report written 2026-09-05 · Data as of 2026-09-04
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