KOSDAQBiotech & Pharma214450

PharmaResearch

₩306,500▼ 2.54%2026-10-02 close

Market Cap

₩3.2T

Turnover

₩39.5B

Volume

130,000 shares

Shares out.

10.4M

PER

22.9×

PBR

—

EPS

₩16,913

Dividend Yield

0.96%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩3,700 per share · Prices as of the 2026-10-02 close

Report overview

Exports Drive Growth While Competition Tests Margins

Rejuran-led exports to Europe in medical devices and to the U.S. in cosmetics pushed quarterly revenue to a record high, yet profit growth trailed revenue growth amid intensifying domestic skin-booster competition and one-off costs.

1
In 2Q26 revenue reached KRW 178.7bn and operating profit KRW 66.5bn, a record quarterly top line, but revenue grew 27.1% year on year versus 19.0% for operating profit.
2
Per the company's August 7, 2026 release, first-half exports rose 47% year on year to KRW 142.8bn, lifting the export share of revenue from 38% to 44%.
3
Growth in exports rests on two pillars: Rejuran sales in Europe through the partnership with France's Laboratoires VIVACY, and Rejuran Cosmetic sales in the U.S. via Amazon and Sephora.
4
In June 2026 the company signed a deal to acquire California-based cosmetics manufacturer Cosmetic Group USA (CG USA), securing a local North American production base; the price was not disclosed.
5
At home, Baim's Juvelook, newly launched ECM (extracellular matrix) skin boosters and full-lineup rivals such as LivScience are multiplying, raising concerns over pricing and marketing pressure.

Business structure

Pharma Research is a regenerative-medicine company that makes and sells medical devices, cosmetics, pharmaceuticals and health supplements based on salmon-derived polynucleotide (PN) and PDRN platform technology branded DOT PDRN and DOT PN.

Its revenue rests on two pillars: the medical device segment housing the skin booster Rejuran, and the cosmetics segment housing the dermocosmetic brand Rejuran Cosmetic.

According to company materials released on August 7, 2026, second-quarter medical device revenue was KRW 96.7bn (KRW 64.5bn domestic, KRW 32.2bn export) and cosmetics revenue KRW 60.2bn (KRW 16.6bn domestic, KRW 43.6bn export), showing how quickly cosmetics has gained weight.

The portfolio also includes the hyaluronic acid filler Rejubiel, the intra-articular injection Konjuran and the eye drop Rian, spanning procedures, therapy and home care.

Domestic sales run mainly through dermatology and plastic surgery clinics, while cosmetics have expanded into Olive Young, pharmacy channels under the Rejuvi brand and duty-free outlets.

Overseas, the main routes are the VIVACY partnership in Europe, Amazon and Sephora in the U.S., and online platforms such as Shopee and TikTok Shop in Southeast Asia.

Management stresses a linked-brand strategy in which devices treat the dermis while procedure-use and home-care cosmetics sustain results, a structure supported by the shared brand name across devices and cosmetics.

Domestically, Baim's Juvelook is the most prominent challenger, joined more recently by ECM-based products led by companies such as L&C Bio and Hans Biomed, by LivScience which bundles the former LG Chem aesthetics business, and by lineup expansion at Hugel and Humedix.

The vertically integrated structure from raw material to finished product is often cited as the reason behind the unusually high operating margin.

Earnings trend

Quarterly revenue · Operating profit

₩140.6B₩55.9B25Q2₩135.4B₩61.9B25Q3₩143.3B₩51.9B25Q4₩146.1B₩57.3B26Q1₩178.7B₩66.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩194.8B₩65.9B2022₩261B₩92.3B2023₩350.1B₩126.1B2024₩536.3B₩214.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩140.6B	₩55.9B	39.7%
2025Q3	₩135.4B	₩61.9B	45.7%
2025Q4	₩143.3B	₩51.9B	36.2%
2026Q1	₩146.1B	₩57.3B	39.2%
2026Q2	₩178.7B	₩66.5B	37.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩194.8B	₩65.9B	₩40.6B	33.8%	11.8%	28.6%
2023	₩261B	₩92.3B	₩76.6B	35.3%	17.7%	15.8%
2024	₩350.1B	₩126.1B	₩92B	36.0%	17.1%	50.3%
2025	₩536.3B	₩214.4B	₩165.1B	40.0%	24.0%	44.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On confirmed figures, revenue rose from KRW 194.8bn in 2022 to KRW 261.0bn in 2023, KRW 350.1bn in 2024 and KRW 536.3bn in 2025 - roughly 2.75 times in three years - while operating profit expanded from KRW 65.9bn to KRW 214.4bn.

The operating margin climbed from 33.8% in 2022 to 35.3%, 36.0% and 40.0% in the following years, so scale came without margin erosion. Net profit attributable to owners grew from KRW 40.6bn in 2022 to KRW 165.1bn in 2025, and operating cash flow of KRW 183.2bn in 2025 converted about 85% of operating profit into cash.

Quarterly revenue moved from KRW 140.6bn in 2Q25 to KRW 135.4bn in 3Q25, KRW 143.3bn in 4Q25 and KRW 146.1bn in 1Q26, then jumped to KRW 178.7bn in 2Q26.

Quarterly operating margin, however, peaked at 45.7% in 3Q25 before easing to 36.2%, 39.2% and 37.2%, and 2Q26 operating profit growth of 19.0% year on year lagged the 27.1% revenue growth.

Brokerage commentary relayed by Kpanews in August 2026 noted that second-quarter revenue beat market expectations while operating profit came in slightly below, weighted down by one-off items such as bonuses and advertising spend.

In 4Q25, net profit attributable to owners of KRW 32.6bn fell more sharply than operating profit of KRW 51.9bn, pointing to non-operating influences.

On accounting, Hana Securities said in an April 2026 report that from 4Q25 domestic medical device sales are recognized net of marketing contributions, reducing reported revenue by roughly 3% versus the previous method.

The debt-to-equity ratio rose from 15.8% in 2023 to 50.3% in 2024 before easing to 44.2% in 2025, with the increase in liabilities coinciding with the KRW 200bn redeemable convertible preferred share funding from CVC Capital Partners.

Industry analysis

In Korea's medical aesthetics market, skin boosters have become the third pillar after botulinum toxin and fillers, and Rejuran has been the reference product in the category since its 2014 launch.

A meaningful share of demand is tied to dermatology spending by inbound visitors, so medical tourism data is treated as a leading indicator for domestic sales.

On the supply side, entrants are multiplying: Shinhan Securities estimates relayed by Asia Today in August 2026 see the domestic ECM skin booster market expanding from KRW 9.9bn in 2025 to KRW 92.5bn in 2026 and KRW 172.9bn in 2027.

The same report counted nine launched brands rising to about twelve by year-end and flagged the risk that, as with toxins and fillers, competition could intensify early.

Regulation is another variable, as PN-based products like Rejuran are governed as medical devices requiring clinical data while ECM products are classified under human tissue rules, a gap that industry participants continue to contest.

Overseas markets remain at an early stage; Rejuran is sold in Europe, Japan, Turkey, Australia and Hong Kong, while in the U.S. the company chose to build brand awareness through cosmetics first.

Competitively, Pharma Research leans on brand recognition and more than a decade of procedure data, but the spread of scale-based models such as LivScience, which bundles toxin, filler and skin booster supply to clinics, represents a new form of pressure.

The common industry conclusion is that absorbing rising domestic supply depends on how fast overseas expansion progresses.

Outlook

In its second-quarter release the company said it would accelerate the build-out of its global base in the second half, centered on Europe and North America, including setting up a local operating hub in France to support partners and manage distribution.

Sales to European partner VIVACY rose from roughly KRW 2-3bn in the first quarter to KRW 5bn in the second, according to brokerage tallies relayed by Kpanews in August 2026, with the company reportedly guiding to a similar level in the third quarter while negotiating fourth-quarter volumes.

In the U.S., distribution touchpoints keep expanding.

Asia Today reported on August 31, 2026 that Rejuran Cosmetic's Amazon sales grew 75% year on year between March and August, that total U.S. sales were up more than 105% on a cumulative basis through August, and that on August 20 the brand entered more than 580 Sephora stores and the online mall in the U.S. through a collaboration with Olive Young.

The same report said a new Costco listing in the U.S. is planned for the fourth quarter, though retail timelines can shift.

On manufacturing, the company says the CG USA acquisition signed in June 2026 will allow a phased shift to local production starting with high-demand North American items such as ampoules and creams, with localization in Canada and the wider Americas also on the agenda.

In the pipeline, the oncology candidate PRD-101 has received U.S.

Phase 1 IND clearance and is being prepared for first patient dosing targeted in the first quarter of 2027, while PN-based devices - a high-concentration Rejuran and a next-generation knee intra-articular injection - are being developed for approval in 2027-2028, subject to regulatory discussions.

On capital policy, a corporate value-up plan disclosed on March 30, 2026 combined a payout ratio target of at least 25% with production line expansion, a global quality system and M&A review.

CEO Son Ji-hoon told the Korea Economic Daily that the company is examining larger M&A candidates than before as it aims to broaden into a total medical aesthetics platform.

Valuation

PER

22.9×

PBR

—

ROE

27.2%

EPS

₩16,913

BPS

—

Dividend per share

₩3,700

The price-to-earnings multiple sits below the level the market assigned during the high-growth phase of 2025, a shift that reflects continued profit growth alongside a reset in price expectations. Brokerage views diverge.

Hana Securities noted in a May 2026 report that the multiple on twelve-month forward earnings was around 15 times and presented a target price of KRW 480,000, while Kiwoom Securities in an April 2026 report applied a target multiple of 20 times and lowered its target price from KRW 470,000 to KRW 410,000.

Against net assets the shares trade at a sizeable premium, which is consistent with a business whose earnings power is concentrated in brand and raw-material technology rather than physical assets.

On dividends, the payout ratio rose from 14.6% in 2024 to 25.9% in 2025, an improving direction, though the absolute payout remains modest relative to earnings so its contribution to total return is limited.

It is also worth noting that CVC Capital Partners' 1,175,647 redeemable convertible preferred shares represent potential dilution of roughly 11% of common shares if converted, which can change how per-share metrics are read depending on the basis used.

Ultimately the variables that shape the multiple are the durability of export growth and whether margins hold up amid tougher domestic competition, both of which will be verified quarter by quarter.

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 2026-09-04

Bull factors

The Shift to Exports Is Showing Up in the Numbers

Company data show 2Q26 exports of KRW 84.0bn, up 62% year on year and equal to 47% of revenue, evidence of a shift away from a domestically driven model.

In Europe, Rejuran sales through the VIVACY partnership rose from roughly KRW 2-3bn in the first quarter to KRW 5bn in the second, and IBK Investment & Securities assessed that the simultaneous progression of initial shipments, reorders and new country launches is faster than in past overseas rollouts.

In the U.S., cosmetics act as the leading indicator, with sales rising through Amazon and Sephora. If domestic and export demand follow different cycles, that could dampen earnings volatility.

Linked Device and Cosmetics Brand Structure

Multiple brokerage analyses note that because the Rejuran device and Rejuran Cosmetic share one brand name, rising awareness in one can feed demand in the other.

Cosmetics revenue of KRW 60.2bn in 2Q26 reached about 60% of medical device revenue of KRW 96.7bn, with exports of KRW 43.6bn far exceeding domestic sales of KRW 16.6bn.

Samsung Securities said in an August 2026 report that it expects export coverage now spanning Asia, Europe and the Americas to translate into parallel growth in devices and cosmetics. Cosmetics also face lower regulatory hurdles than devices, which allows faster entry into new countries.

High Margins, Cash Generation and a Stated Payout Floor

A 2025 operating margin of 40.0% and operating cash flow of KRW 183.2bn point to a cash base capable of funding growth investment and dividends at the same time.

In the value-up plan disclosed on March 30, 2026 the company set a payout ratio floor of 25%, and the actual payout ratio rose from 14.6% in 2024 to 25.9% in 2025. The debt-to-equity ratio also eased from 50.3% in 2024 to 44.2% in 2025, preserving balance sheet capacity.

Because local production and distribution investment were presented alongside the payout floor, the ability to pursue both may become a key yardstick.

Bear factors

Domestic Competition and Margin Pressure

Beyond Baim's Juvelook, ECM-based products are proliferating at home, and Shinhan Securities estimates cited by Asia Today see the number of ECM skin booster brands rising from nine to about twelve by year-end.

The same report argued that when supply chains, brand strength and clinic networks matter more than technology gaps, sales and marketing competition tends to intensify. The 2Q26 operating margin of 37.2% was already below the 45.7% recorded in 3Q25, and profit growth trailed revenue growth. If marketing and promotional costs keep rising, the sustainability of such high margins will be tested.

Reliance on One Brand and Inbound Demand

Most revenue comes from the Rejuran brand family, and a large share of domestic demand is tied to dermatology spending by foreign visitors.

Hana Securities estimated in an April 2026 report that inbound tourists account for roughly 50% of domestic Rejuran demand, meaning results can be sensitive to travel patterns, exchange rates and diplomatic conditions.

Seasonality also plays a role, with the first and third quarters described as off-peak for foreign dermatology spending. Concentrating growth and margins in a single brand also means any credible substitute could hit results in a focused way.

Unproven M&A Record and Potential Dilution

Edaily reported in August 2026 that Medicoson, the device maker whose control Pharma Research acquired in 2021, was in a state of full capital erosion as of end-June and posted a net loss of about KRW 2.2bn in the first half.

The same report flagged continuing equity-method losses and goodwill impairments across some acquired and invested assets. For the CG USA deal signed in June 2026, neither the price nor the target's revenue and utilization were disclosed, making integration outcomes hard to verify from outside.

In addition, CVC Capital Partners' 1,175,647 redeemable convertible preferred shares have been convertible since October 2025 and become redeemable from October 2027, leaving an open capital structure variable.

Risk factors

Regulation and Approvals

In Korea, the Ministry of Food and Drug Safety has moved to tighten oversight of practices such as clinics injecting products approved only as cosmetics, and the regulatory gap between PN-based devices and human-tissue-classified products remains under debate.

The direction of regulation could favor established device makers or, alternatively, cool procedure demand across the category, so the outcome is not one-sided. Overseas, maintaining and expanding CE MDR status in Europe and meeting U.S. cosmetics and OTC requirements affect both timelines and costs. Pipeline schedules, as the company itself notes, may shift depending on discussions with regulators.

Reading Export Data, FX and Tariffs

Samsung Securities said customs export data should be distinguished from actual revenue and used mainly to check which countries are shipping and the rough quarterly trend, citing export price adjustments aimed at reducing tariffs, indirect shipments and timing volatility in customs recognition.

When monthly export statistics amplify share price swings, misreading the data can distort judgment. With exports now at 47% of revenue, currency moves and tariff policy have a larger effect on both sales and costs.

Shifting to U.S. local production reduces that sensitivity, but the early transition can bring dual inventory and start-up costs.

Execution and Integration Risk

The payoff from CG USA will only be measurable once the first locally produced SKUs, initial volumes and improvements in cost and inventory turn appear in the numbers, and Bloter noted in July 2026 that allocating capacity between CG USA's existing customers and Rejuran volumes is another variable.

U.S. channel expansion increases inventory and promotional workload alongside revenue; first-quarter consolidated inventories were reported to have grown from KRW 18.5bn in 2022 to KRW 86.7bn in 2026. At large retailers such as Sephora and Costco, stock-outs, reviews and promotion management feed directly into sales. Maintaining consistent product quality as channels multiply is a further challenge.

What to watch next

Early to mid-November 2026
Third-quarter preliminary results, with the prior year's third-quarter release having come on November 11. Key items are whether the export share holds near the 47% seen in the second quarter despite seasonal softness, whether the operating margin is defended around 37%, and whether sales to VIVACY reach the roughly KRW 5bn the company expected.
Fourth quarter of 2026
Whether the planned U.S. Costco listing begins, and early sell-through at the more than 580 U.S. Sephora doors entered in August. Whether wider offline exposure converts into reorders is the key gauge of cosmetics export durability.
4Q26 through 1H27
Disclosure of the first SKUs and initial volumes shifted to CG USA production, plus any improvement in unit costs and inventory turnover. Until the deal's effects appear in figures, expectations remain qualitative.
First quarter of 2027
The targeted date for first patient dosing in the U.S. Phase 1 trial of the oncology candidate PRD-101. The company has said timing may change with regulatory discussions and site procedures, so any delay and its reason should be checked.
February to March 2027
Confirmation of full-year 2026 results, the dividend decision and any update to the corporate value-up plan. Whether the 25% minimum payout ratio set out in March 2026 is maintained, and whether any disclosure appears on conversion or redemption of the preferred shares, will inform the capital policy picture.

Overall view

Pharma Research grew revenue from KRW 194.8bn in 2022 to KRW 536.3bn in 2025 while lifting its operating margin from 33.8% to 40.0%, a combination of growth and profitability rarely seen in Korea's medical aesthetics sector.

In 2Q26 revenue hit a record KRW 178.7bn and, on company figures, the export share of revenue reached 47%, showing the growth engine shifting from domestic to overseas markets.

Yet in the same quarter operating profit grew 19.0% against 27.1% revenue growth, and the operating margin fell from 45.7% in 3Q25 to 37.2%, a reminder that the quality of growth deserves equal attention.

The bullish case rests on export expansion through the VIVACY partnership in Europe and Amazon and Sephora in the U.S., the shared-brand structure linking devices and cosmetics, and the stated payout floor of at least 25%.

The bearish case rests on pricing and marketing pressure from a wave of domestic entrants including ECM products, dependence on a single Rejuran brand and inbound demand, accumulated losses at some acquired assets, and the capital structure question around the redeemable convertible preferred shares.

Valuation multiples sit below the levels assigned during the 2025 high-growth phase while still carrying a premium to net assets, so export durability and margin defense remain the factors that will shape those multiples.

The verification sequence is clear: off-season export durability in third-quarter results, the impact of U.S. offline channel expansion in the fourth quarter, then CG USA integration outcomes and pipeline timelines. This report is for information purposes only and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.