KOSDAQBiotech & Pharma214260

Raphas

₩7,800▲ 0.13%2026-10-02 close

Market Cap

₩68.2B

Turnover

₩48,034,810

Volume

6,276 shares

Shares out.

8.9M

PER

—

PBR

2.6×

EPS

-₩608

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

Microneedle Obesity Patch Nears Trial Milestone Amid Losses

Raphas has validated its microneedle manufacturing capability through cosmetics sales and is preparing to enter global Phase 2 trials for its GLP-1 obesity patch 'RapMed-2003', but has posted consolidated operating losses for four consecutive years.

1
2025 consolidated revenue rose 13.9% YoY to KRW 31.0bn, but operating loss persisted at over KRW 3.0bn, marking four straight years of losses
2
Phase 1 trial of GLP-1 semaglutide-based obesity patch 'RapMed-2003' confirmed bioavailability of about 30%; global Phase 2 preparations underway
3
Signed joint PLGA nano-microneedle development and exclusive CMO partnership with Japan's Hosokawa Micron (July 2026)
4
Q2 2026 operating loss widened to KRW 1.77bn from the prior quarter, reflecting notable quarter-to-quarter volatility
5
Debt ratio in the 140% range with four consecutive years of net losses, warranting attention to capital buffer

Business structure

Founded in 2006 and listed on KOSDAQ in 2019 under the technology growth company special listing track, Raphas specializes in transdermal drug delivery via microneedle technology.

The company holds proprietary DEN (Droplet Extension) technology, which allows microneedles to be manufactured in about five minutes using only room-temperature air-drying without UV exposure, and its mold-free process enables flexible control of needle length and pattern—a key differentiator from competitors.

A substantial portion of current revenue comes from the cosmetic beauty patch segment centered on the 'AcroPass' brand, with recent revenue growth driven by increased ODM business and expanded proprietary brand sales.

The company's CEO has stated that the cosmetics business ultimately serves to validate mass-production capability and accumulate formulation know-how for microneedle technology.

In the pharmaceutical segment, an improved allergic rhinitis immunotherapy drug and a GLP-1 class diabetes/obesity treatment patch have completed Phase 1 trials and are being pursued for technology licensing.

Raphas has co-developed the GLP-1 obesity treatment 'DW-1022' with Daewon Pharmaceutical, and has partnered with Japan's Hosokawa Micron to jointly develop a next-generation drug delivery system combining PLGA nanocomposite encapsulation technology, securing an exclusive contract manufacturing (CMO) partner position.

Production takes place at the Cheonan plant (certified for cosmetics CGMP and medical device GMP) and at a clinical-grade pharmaceutical GMP facility at the Magok headquarters in Seoul, with the company pursuing a phased expansion strategy across cosmetics, pharmaceuticals, and medical devices.

Earnings trend

Quarterly revenue · Operating profit

₩8.1B-₩700M25Q2₩9.6B-₩600M25Q3₩6.2B-₩1B25Q4₩6.8B-₩500M26Q1₩7.6B-₩1.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩23.6B-₩6.6B2022₩27.9B-₩4.1B2023₩27.2B-₩3.5B2024₩31B-₩3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩8.1B	-₩700M	−8.9%
2025Q3	₩9.6B	-₩600M	−6.7%
2025Q4	₩6.2B	-₩1B	−15.8%
2026Q1	₩6.8B	-₩500M	−7.6%
2026Q2	₩7.6B	-₩1.8B	−23.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩23.6B	-₩6.6B	-₩8.5B	−27.7%	−20.8%	118.3%
2023	₩27.9B	-₩4.1B	-₩8.8B	−14.5%	−29.8%	210.8%
2024	₩27.2B	-₩3.5B	-₩4.8B	−12.7%	−16.3%	140.6%
2025	₩31B	-₩3B	-₩4.3B	−9.8%	−15.2%	144.4%

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

Raphas's consolidated revenue showed gradual growth, rising from KRW 23.6bn in 2022 to KRW 27.9bn in 2023, KRW 27.2bn in 2024, and KRW 31.0bn in 2025. Operating losses, meanwhile, narrowed steadily from KRW 6.55bn in 2022 to KRW 4.05bn in 2023, KRW 3.46bn in 2024, and KRW 3.03bn in 2025.

The operating margin improved from -27.7% in 2022 to -9.8% in 2025, indicating a gradually improving profit structure. However, net loss attributable to owners only edged down slightly from KRW 4.77bn in 2024 to KRW 4.31bn in 2025, with net losses recorded in all four years, continuing the cumulative loss burden.

On a quarterly basis, revenue rose from KRW 8.12bn in Q2 2025 to KRW 9.60bn in Q3, then declined to KRW 6.21bn in Q4, before recovering to KRW 6.77bn in Q1 2026 and KRW 7.58bn in Q2 2026.

Operating loss narrowed to KRW 0.64bn in Q3 2025 before widening again to KRW 0.98bn in Q4, then shrank to KRW 0.52bn in Q1 2026 but expanded sharply to KRW 1.77bn in Q2 2026, showing considerable quarter-to-quarter volatility.

Net loss attributable to owners similarly grew from KRW 1.18bn in Q3 2025 to KRW 1.56bn in Q4, and further widened to KRW 1.91bn in Q2 2026, indicating that recent quarterly losses have actually been trending larger.

On the cash flow side, operating cash flow turned positive at KRW 1.43bn in 2025, but had been negative in 2022 and 2023, suggesting the stability of cash generation capacity is still being tested.

Industry analysis

The microneedle systems market continues to expand its application scope across cosmetics, medical devices, and prescription pharmaceuticals, with market research estimating annual growth of around 6% to reach approximately USD 1.2 billion by 2030.

The GLP-1 class obesity and diabetes treatment market remains dominated by injectable formulations such as Wegovy, Ozempic, and Zepbound, but growing demand for non-invasive administration methods including oral and patch formulations has spurred competitive development efforts among numerous global pharmaceutical companies and biotechs.

Beyond original developers Novo Nordisk and Eli Lilly, companies including Roche, Zealand Pharma, and Amgen are also expanding next-generation GLP-1/amylin pipelines, rapidly evolving the competitive landscape.

Raphas is regarded as belonging to a leading group among global microneedle patch drug developers, an analysis attributing this in part to the company's early establishment of mass-production systems through its cosmetics business.

However, no microneedle-based prescription drug has yet received regulatory approval anywhere in the world, meaning clinical and regulatory uncertainty remains common across the industry, including for later entrants.

In the cosmetics segment, the company has noted increasing microneedle formulation requests from domestic and overseas clients amid rising interest in K-beauty, suggesting a relatively stable ODM demand base.

Outlook

According to a January 2026 report, Phase 1 trials of the GLP-1 semaglutide-based obesity treatment patch 'RapMed-2003' demonstrated pharmacokinetic (PK) data with a single application, confirming approximately 30% bioavailability and suggesting the feasibility of a once-weekly patch.

The company is preparing to enter global Phase 2 trials for this pipeline while reportedly pursuing technology licensing in parallel. The GLP-1 obesity treatment 'DW-1022,' co-developed with Daewon Pharmaceutical, has also entered clinical trial stages.

In July 2026, Raphas signed a joint development agreement with Japan's Hosokawa Micron for a next-generation drug delivery system incorporating PLGA nanocomposite encapsulation technology, with both companies stating that prototype verification had been completed and commercialization stages had begun.

Through this agreement, Raphas secured exclusive contract manufacturing (CMO) partner status for the product, which the company said it expects to become a stable long-term revenue source. An improved allergic rhinitis immunotherapy drug has also completed Phase 1 trials and is being pursued for technology licensing.

In the cosmetics segment, expanding ODM revenue and globalizing proprietary brand sales channels continue to broaden the revenue base.

However, the timing and scale at which these new pipelines translate into actual revenue remain contingent on clinical trial progress and the conclusion of technology licensing agreements, and are not yet on a confirmed schedule.

Valuation

PER

—

PBR

2.6×

ROE

-19.3%

EPS

-₩608

BPS

₩3,050

Dividend per share

₩0

With four consecutive years of net losses, Raphas presents challenges for earnings-based valuation metrics, and its shares tend to trade at a premium to net asset value. The company has no recent dividend payment history, limiting the relevance of dividend yield comparisons.

Historical trading ranges show considerable volatility tied to clinical trial events and technology licensing expectations, and recently the stock appears influenced by an alternating mix of cosmetics segment profitability improvements and pipeline progress news.

The debt ratio jumped sharply from 118% in 2022 to 211% in 2023 before easing to the 140% range in 2024-2025, but with net losses persisting, the capital buffer still warrants attention.

Against this backdrop, the appropriateness of any premium to net asset value is likely to hinge significantly on the outcome of upcoming GLP-1 patch Phase 2 trials and whether technology licensing deals materialize.

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

GLP-1 Obesity Patch Clinical Progress

Phase 1 trials of RapMed-2003 secured PK data from a single patch application and confirmed approximately 30% bioavailability, suggesting the feasibility of a once-weekly patch.

Given that no microneedle-based prescription drug has ever received regulatory approval globally, success in Phase 2 trials would likely draw significant market attention. DW-1022, co-developed with Daewon Pharmaceutical, is also in clinical trial stages, meaning multiple pipelines are progressing in parallel.

Gradual Improvement in Profit Structure

Operating margin improved from -27.7% in 2022 to -9.8% in 2025, reflecting simultaneous revenue growth and cost efficiency gains. Rising ODM revenue and expanding proprietary brand sales are broadening the revenue base.

The cosmetics segment has recorded standalone-basis profitability in some periods, indicating profitability differences across business units.

Expanding Global Partnerships

The joint PLGA nano-microneedle development agreement with Japan's Hosokawa Micron secured exclusive CMO partner status. This can be interpreted as recognition of Raphas's production capabilities and technology platform by a global company.

The partnership also opens possibilities for expansion into new application areas such as hair loss and hair growth products.

Bear factors

Four Consecutive Years of Net Losses

The company recorded net losses every year from 2022 through 2025, and the Q2 2026 net loss attributable to owners actually widened to KRW 1.91bn. Quarterly earnings volatility has also been substantial, requiring further observation to confirm the sustainability of any profitability improvement.

As long as investment in new clinical and licensing pipelines continues, near-term profitability appears difficult to achieve.

Clinical Success and Commercialization Uncertainty

No microneedle-based prescription drug has yet received regulatory approval anywhere in the world, meaning the path to regulatory approval remains unverified even after Phase 2 trials.

The GLP-1 market is crowded with numerous competing pipelines beyond Novo Nordisk and Eli Lilly, placing pressure on the company to demonstrate competitiveness in licensing negotiations. Since the timing and scale of any technology licensing deal remain unconfirmed, related expectations remain fluid.

Financial Structure and Capital Buffer

The debt ratio rose as high as 211% in 2023 and remained elevated at around 144% in 2025. Equity attributable to owners declined from KRW 40.9bn in 2022 to KRW 28.3bn in 2025, indicating that accumulated net losses continue to erode capital.

Given the characteristics of a small-cap stock, the possibility of equity dilution from future fundraising events such as rights offerings or convertible bond issuances cannot be ruled out.

Risk factors

Clinical & Regulatory Risk

Core pipelines including the GLP-1 obesity patch and allergic rhinitis treatment remain at pre-Phase 2 stages, and any clinical failure or delay could undermine the basis for valuation.

Since no microneedle-based prescription drug has been approved anywhere globally, regulatory review standards for this modality are not yet clearly established.

Profitability & Financial Risk

Net losses have persisted for four consecutive years with substantial quarterly earnings volatility. The debt ratio remains elevated, potentially necessitating additional external financing, which could increase equity dilution or financial cost burdens.

Competition & Licensing Risk

Numerous global pharmaceutical majors and biotechs are competitively developing follow-on pipelines in the GLP-1 treatment market, raising the possibility that Raphas's patch formulation may struggle to maintain differentiation.

If technology licensing agreements are delayed beyond expectations or fall short of anticipated terms, the timing for realizing pipeline value could be pushed back.

What to watch next

Q4 2026
Confirm whether RapMed-2003's global Phase 2 trial for the GLP-1 obesity patch commences and whether detailed trial design is disclosed.
Q3 2026 earnings release
The next quarterly results should be checked to determine whether the widened Q2 2026 operating loss (KRW 1.77bn) was a temporary factor or a trend change.
Upon follow-up disclosures on the Hosokawa Micron partnership
Monitor the commercialization progress of the PLGA nano-microneedle joint development and the timing of actual revenue contribution.
Upon disclosure of Daewon Pharmaceutical's DW-1022 trial progress
Confirm the progress of clinical stages for the co-developed obesity treatment and the status of technology licensing discussions.

Overall view

Raphas has grown revenue while demonstrating mass-production capability through its cosmetics microneedle business, and operating margin improved from -27.7% in 2022 to -9.8% in 2025.

However, net losses attributable to owners have continued for four consecutive years, and quarterly volatility has been substantial, with losses actually widening in Q2 2026.

The GLP-1 obesity treatment patch and allergic rhinitis treatment, cited as key growth drivers, remain at pre-Phase 2 stages, requiring numerous additional clinical and regulatory steps before commercialization.

Expanding global partnerships, such as the CMO arrangement with Hosokawa Micron, are a positive development, though the timing of actual revenue contribution remains unconfirmed. With the debt ratio maintained around 140% amid accumulating net losses, ongoing scrutiny of financial buffer capacity is warranted.

Ultimately, Raphas's future trajectory appears likely to hinge on how well the cosmetics segment's stable cash generation is supported by clinical and licensing progress in the GLP-1 and rhinitis pipelines.

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.