KOSPIBiotech & Pharma102460

Reyon Pharmaceutical

₩10,130▼ 0.20%2026-10-02 close

Market Cap

₩188.1B

Turnover

₩300M

Volume

30,000 shares

Shares out.

18.6M

PER

—

PBR

0.9×

EPS

-₩1,867

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

Chungju Plant Utilization to Define the Next Phase

How fast the KRW324.6 billion Chungju bio-chemical plant translates into actual revenue is emerging as the key variable that will shape the next phase for Reyon Pharmaceutical, which has seen three straight years of declining sales and a recent swing to operating losses.

1
2025 consolidated revenue came to KRW145.9 billion, slightly down year over year, while operating profit swung to a loss of KRW30.3 billion.
2
Operating and net losses have persisted for five consecutive quarters from Q2 2025 through Q2 2026.
3
The Chungju plant has secured KGMP and biopharmaceutical contract-manufacturing GMP certifications and started injectable production, but no large disclosed order has yet emerged.
4
The wet AMD gene therapy candidate NG101 has received FDA Fast Track designation, with Phase 1/2a clinical data presented at ARVO this year.
5
The conversion price of the KRW85 billion third-tranche convertible bond has been refixed downward, with a put-option exercise window approaching around October 2026.

Business structure

Reyon Pharmaceutical is a long-established mid-cap Korean pharmaceutical company built on two pillars: a chemical (synthetic drug) business and a biologics business.

The chemical segment produces prescription drugs such as contrast media, antibiotics, and cardiovascular/gastrointestinal treatments as well as active pharmaceutical ingredients, serving as the company's stable cash-generating base.

The company recently completed local registration for a five-year long-term supply contract of MRSA antibiotic ingredients to a Japanese pharmaceutical company.

The biologics segment is centered on the bio-chemical plant in Chungju, North Chungcheong Province, built at a total cost of KRW324.6 billion, offering one-stop contract development and manufacturing (CDMO) capability from raw materials such as plasmid DNA, viral vectors, and mRNA through to finished products.

The plant obtained KGMP certification in August 2023 and biopharmaceutical contract-manufacturing GMP certification in November 2024.

The company holds worldwide exclusive manufacturing rights for NG101, a wet age-related macular degeneration gene therapy co-developed with Nuclacle Genetics (now Elysigen), and the Chungju bio plant is expected to become the exclusive global production base if the candidate reaches commercialization.

Reyon has also signed joint-development and cooperation agreements with numerous bio ventures including TheraBest (NK cell therapy) and AnimusCure (sarcopenia) to expand its pipeline.

In the domestic CDMO market, well-capitalized latecomers such as Samsung Biologics, Lotte Biologics, and CJ CheilJedang have been entering in succession, positioning Reyon to seek differentiation in specialized niches such as its rare dedicated plasmid DNA production facility.

Earnings trend

Quarterly revenue · Operating profit

₩37.7B-₩11.1B25Q2₩37.6B-₩7.2B25Q3₩33.9B-₩8.2B25Q4₩36.1B-₩6.7B26Q1₩35.8B-₩7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩154B₩9.6B2022₩151.1B₩4B2023₩148.3B₩79,259,1942024₩145.9B-₩30.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩37.7B	-₩11.1B	−29.4%
2025Q3	₩37.6B	-₩7.2B	−19.2%
2025Q4	₩33.9B	-₩8.2B	−24.1%
2026Q1	₩36.1B	-₩6.7B	−18.5%
2026Q2	₩35.8B	-₩7B	−19.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩154B	₩9.6B	₩7.4B	6.3%	3.0%	95.6%
2023	₩151.1B	₩4B	₩3.6B	2.7%	1.4%	101.0%
2024	₩148.3B	₩79,259,194	₩4.2B	0.1%	1.7%	100.0%
2025	₩145.9B	-₩30.3B	-₩29.6B	−20.7%	−13.5%	111.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21

Earnings analysis

Reyon's consolidated revenue declined modestly for four straight years, from KRW154.0 billion in 2022 to KRW151.1 billion in 2023, KRW148.3 billion in 2024, and KRW145.9 billion in 2025.

Over the same period, operating profit fell from KRW9.6 billion (6.3% margin) in 2022 to KRW4.0 billion (2.7%) in 2023 and KRW0.08 billion (0.1%) in 2024, before swinging to an operating loss of KRW30.3 billion (-20.7% margin) in 2025.

Net income attributable to owners likewise stayed positive at KRW7.4 billion in 2022, KRW3.6 billion in 2023, and KRW4.2 billion in 2024, before turning to a net loss of KRW29.6 billion in 2025.

According to the company, this deterioration largely reflects the cost-of-goods ratio rising sharply as depreciation on the Chungju bio-chemical plant, completed in 2021, began flowing through cost of goods sold after the asset was reclassified from construction-in-progress in 2024.

In contrast, the SG&A ratio has been on a steady downward trend, indicating cost control outside the cost-of-goods structure is progressing.

On a quarterly basis, operating losses have continued for five straight quarters: KRW11.1 billion in Q2 2025, KRW7.2 billion in Q3 2025, KRW8.2 billion in Q4 2025, KRW6.7 billion in Q1 2026, and KRW7.0 billion in Q2 2026.

Net losses attributable to owners have fluctuated from KRW13.1 billion in Q2 2025 to KRW6.8 billion in Q2 2026 but have remained in loss territory throughout, with the four-quarter sum from Q3 2025 through Q2 2026 reaching roughly KRW34.2 billion.

Quarterly revenue has moved without clear direction in a KRW34-38 billion range over this period, leaving normalization of the cost structure as a more pressing task than top-line growth.

On the balance sheet, equity declined from KRW247.8 billion in 2022 to KRW220.3 billion in 2025 while liabilities rose from KRW236.9 billion to KRW244.8 billion, pushing the debt ratio up from 95.6% to 111.1%.

Industry analysis

Korea's bio-pharma industry is seeing intense competition to build out CDMO (contract development and manufacturing) capacity, with well-capitalized players such as Samsung Biologics, Lotte Biologics, and CJ CheilJedang entering the market in succession.

Against this backdrop, Reyon has combined a rare domestic E. coli fermentation-based plasmid DNA production facility with AAV (adeno-associated virus) process technology, aiming for a differentiated position in cell and gene therapy (CGT) raw materials.

Industry sources have suggested that once CGT raw material production and biopharmaceutical CDMO orders pick up, plant utilization would rise and the pace of profitability improvement would accelerate.

The downstream wet age-related macular degeneration treatment market is projected to grow from roughly KRW9 trillion in 2023 to about KRW23 trillion by 2031, with the gene-therapy sub-segment expected to expand from around KRW700 billion in 2026 to about KRW7 trillion by 2031.

In contrast, the domestic chemical and generic business remains exposed to drug-pricing policy, and the company attributed part of its 2025 revenue decline to the effect of price cuts.

The pattern of bearing large upfront investment costs before revenue catches up is not unique to Reyon but is a broader feature of traditional pharma companies transitioning toward a bio CDMO business model.

Outlook

The company has set a goal for the Chungju plant to move into full operation across injectables, biopharmaceuticals, and CDMO this year, driving revenue growth.

It has already obtained a manufacturing license for injectables and begun production at the Chungju plant, and the company says domestic and overseas orders below the disclosure threshold (10% or more of prior-year revenue) continue to flow in.

On the pipeline side, 52-week follow-up data from the low-dose cohort of NG101's Phase 1/2a trial showing roughly an 89% reduction in average injection frequency versus existing therapy were presented at the American Academy of Ophthalmology's ARVO 2026 meeting this year.

The company plans to release additional 12-month-plus follow-up data and mid/high-dose cohort data in the second half of the year, and is also pursuing expansion into dry AMD, a larger indication.

NG101 received FDA Fast Track designation in November 2024, opening a pathway for accelerated approval after Phase 2 and priority review after Phase 3 completion, through ongoing communication with regulators.

On the financing side, the put option on the second-tranche CB (KRW70 billion) was exercised last September, but the company fully repaid it using proceeds from the third-tranche CB (KRW85 billion), resolving that liquidity risk at the time.

However, the third-tranche CB's conversion price has been refixed down to its floor of KRW11,858 following the stock's decline, meaning a similar repayment burden could recur depending on future share price movement.

Valuation

PER

—

PBR

0.9×

ROE

-15.9%

EPS

-₩1,867

BPS

₩10,620

Dividend per share

₩0

Having posted a consolidated net loss in 2025, Reyon sits in a range where the price-to-earnings ratio is not meaningfully calculable.

Its price-to-book ratio sits at a level where market capitalization is close to or below consolidated equity, a position distinct from a range reflecting a large premium over net asset value.

No cash dividend has been paid based on the most recent fiscal year, limiting the appeal of shareholder returns through dividends.

Unlike the period before 2022 when the company was generating operating profit, it has re-entered a loss-making phase recently, so assessing the relationship between earnings and valuation requires watching whether profitability recovers as Chungju plant utilization rises.

The downward refixing of the third-tranche convertible bond's conversion price is also worth noting in connection with potential future share dilution.

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

Room for Higher Chungju Plant Utilization

The Chungju bio-chemical plant is designed for one-stop production from raw materials to finished products, and its internal and external idle space could allow current production capacity to increase without further expansion.

Certification is already complete, with KGMP obtained in 2023 and biopharmaceutical contract-manufacturing GMP obtained in 2024.

Production of injectables began last year after obtaining a manufacturing license, and smaller orders below the disclosure threshold continue, including a five-year long-term supply contract for MRSA antibiotic ingredients to a Japanese pharmaceutical company.

Industry observers view that if utilization actually rises, the fixed-cost burden would ease and the pace of profitability improvement could accelerate.

A Differentiated Gene Therapy Pipeline

NG101, a wet age-related macular degeneration gene therapy, disclosed Phase 1/2a low-dose cohort data showing an approximately 89% reduction in average injection frequency over 52 weeks versus existing therapy, with 83% of patients maintaining vision with one or fewer additional injections.

The candidate received FDA Fast Track designation in November 2024, opening a pathway for staged regulatory communication through development.

Reyon holds worldwide exclusive manufacturing rights for the therapy, meaning the Chungju bio plant would serve as the exclusive global production base if commercialization advances. A strategy to expand into the larger dry AMD indication is also being pursued.

Stable Profit Contribution from the Chemical Segment

The chemical (synthetic drug) segment, based on contrast media, antibiotics, and active pharmaceutical ingredients, has grown operating profit steadily from KRW4.6 billion in 2023 to KRW5.6 billion in 2024 and KRW8.3 billion in 2025.

This has provided a company-wide cash-generation base even as large investment costs in the biologics segment are recognized upfront. The largest shareholder and related parties hold over 55% of shares, maintaining a stable governance structure that is worth noting for consistency in management direction.

Bear factors

Consecutive Losses and Stagnant Revenue

Reyon's consolidated revenue has declined for three straight years since peaking at KRW154.0 billion in 2022, and 2025 operating profit swung to a loss of KRW30.3 billion.

Operating and net losses have continued for five straight quarters from Q2 2025 through Q2 2026, and quarterly revenue has failed to show a clear growth direction, staying in a KRW34-38 billion range.

The cost-of-goods ratio surging from 44.4% in 2021 to 73.8% in 2025 is attributed to the full recognition of Chungju plant depreciation costs.

Slow Ramp-Up of Chungju Plant Utilization

The Chungju plant, built at a cost of KRW324.6 billion, was completed in 2021, but commercial production took considerable time to begin, drawing some criticism over the delay.

The company says smaller orders below the disclosure threshold continue, but no large order disclosure equal to 10% or more of prior-year revenue has yet emerged, making it difficult for outside observers to gauge the pace of utilization improvement.

How much longer the phase of large capital costs being recognized ahead of matching revenue will continue remains a key question.

Financial Leverage and Convertible Bond Risk

The debt ratio rose from 95.6% in 2022 to 111.1% in 2025, while cash and cash equivalents fell from KRW66.7 billion at the end of 2021 to KRW8.5 billion at the end of the third quarter of 2025.

The put option on the second-tranche CB (KRW70 billion) was exercised, forcing large-scale fundraising, and the resulting third-tranche CB (KRW85 billion) issuance raised the interest burden from 0% to 5%.

The third-tranche CB's conversion price has been lowered to its floor of KRW11,858 following the stock's decline, and if the share price continues to trade below that level, a similar funding burden from a future put-option exercise could recur.

Risk factors

Financial/Liquidity Risk

Rising debt ratios combined with dwindling cash reserves have increased reliance on external financing.

Under the convertible bond's terms, if the share price continues to trade below the conversion price, investors could exercise put options, raising the possibility of a recurring repayment burden depending on share price trends.

Operating cash flow also depends significantly on non-cash cost add-backs such as depreciation, leaving genuine cash-generation improvement as an ongoing task.

Operational Execution/Quality Risk

Reyon has a history of regulatory sanctions from Korea's Ministry of Food and Drug Safety, including a recall for quality non-conformance, a product withdrawal due to foreign-substance contamination, and a manufacturing suspension for violating supply regulations.

Stability of the quality management system at the newly ramping Chungju plant is an important variable, and domestic drug-pricing cuts could continue to weigh on chemical segment revenue.

Pipeline/Clinical Risk

NG101 remains at the Phase 1/2a stage, and the disclosed data come from a small number of subjects in the low-dose cohort, with mid/high-dose cohort data and larger follow-on clinical results not yet confirmed.

The gene therapy field has numerous global competitors, leaving the timing of commercialization and the ability to secure market share uncertain.

What to watch next

Around October 25, 2026
The put-option exercise window for the third-tranche convertible bond (KRW85 billion) approaches. Watching the relationship between the share price and the refixed conversion price (KRW11,858) will help gauge the risk of a recurring funding burden.
Second half of 2026
Additional NG101 follow-up data beyond 12 months and mid/high-dose cohort data are due for release, warranting attention to durability of efficacy and dose-response differences.
Mid-November 2026 (Q3 report filing)
The Q3 earnings disclosure will be a point to check whether Chungju-plant-driven revenue contribution and improvement signals in the cost-of-goods ratio and utilization begin to appear.
Ongoing disclosure monitoring
It is worth continuously checking for disclosures of new CDMO or API supply orders equal to 10% or more of prior-year revenue, as these would be the most direct evidence of rising plant utilization.

Overall view

Reyon Pharmaceutical is built on two pillars: steady profit contribution from its chemical segment and expansion into bio CDMO and gene therapy through the Chungju plant.

However, as shown by the swing to a consolidated operating loss in 2025 and five consecutive quarters of losses, the depreciation burden from large-scale capital investment has outpaced the speed of revenue recovery.

NG101's clinical data and FDA Fast Track designation demonstrate pipeline potential, but the program remains at an early clinical stage, and no large confirmed order at the Chungju plant has been externally verified in detail.

On the financial side, the rising debt ratio and the downward refixing of the third-tranche convertible bond's conversion price remain factors carrying both future funding pressure and potential share dilution.

Ultimately, the direction of future earnings will depend on how quickly Chungju plant utilization actually rises and how smoothly NG101 and the broader pipeline progress through clinical stages.

Investors will want to track quarterly cost-of-goods trends, CDMO order disclosures, and convertible-bond-related events together going forward.

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.