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
SLS Bio, whose shares have been suspended from trading since June 2025 following an administrative action tied to its drug quality-testing accreditation, has seen quarterly revenue recover after re-certification, but the final delisting review is now underway as its improvement period has ended.
Trading has been suspended since June 10, 2025, and the company now awaits the final delisting decision following the end of its improvement period on August 31, 2026.
The core drug quality-management business collapsed after the June 2025 business suspension but has shown sequential revenue recovery in Q1 and Q2 2026 following October 2025 re-certification.
Despite the revenue recovery, operating losses persisted in both Q1 and Q2 2026, and the full-year 2025 operating margin turned negative at -103.0%.
The company is diversifying into food safety testing and diagnostic kits, targeting self-quality-testing institution accreditation in Q3 2026.
Equity has declined sharply from 2024 levels and the debt ratio has risen again, signaling weakening balance-sheet stability.
SLS Bio is a KOSDAQ-listed bio company whose core business is drug quality-management testing services.
The company generates revenue by performing bioequivalence tests, raw-material and finished-drug testing, and analytical testing on behalf of pharmaceutical clients, and this segment has historically accounted for a substantial share of annual revenue.
Its client base includes domestic and global pharmaceutical and bio companies such as Pfizer and LG Chem, with whom it has partnership agreements for quality-management services.
In its new drug development support business, the company provides outsourced efficacy evaluation, toxicity evaluation, and clinical trial-related services.
In in-vitro diagnostics, the company has already obtained approvals for various diagnostic kits covering COVID-19, bovine pregnancy, and allergy testing based on its platform technology, and is now pursuing new product launches such as a combo kit capable of simultaneous influenza and COVID-19 detection.
As part of business diversification, the company is also pushing into the food safety testing market; in March 2026 it received satisfactory ratings across 15 items including microbiology, heavy metals, and pesticide residues in proficiency tests administered by international bodies LGC and FAPAS, and in February of the same year it received approval as a designated agricultural and marine product safety testing institution from the National Agricultural Products Quality Management Service.
The company's roadmap targets self-quality-testing institution accreditation in the third quarter and an application for food testing specialist institution accreditation in the fourth quarter of this year.
Both the drug quality-management and new drug development support businesses are classified as high-barrier markets due to the need for expensive equipment and government regulatory requirements.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩1.6B | -₩700M | −42.4% |
| 2025Q3 | ₩300M | -₩1.8B | −608.8% |
| 2025Q4 | ₩300M | -₩1.4B | −413.6% |
| 2026Q1 | ₩1B | -₩1B | −99.2% |
| 2026Q2 | ₩1.3B | -₩900M | −69.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩10.8B | ₩2.4B | ₩2.8B | 22.5% | 42.1% | 75.3% |
| 2023 | ₩9B | ₩1B | ₩1.4B | 11.4% | 10.6% | 32.5% |
| 2024 | ₩8.4B | ₩300M | ₩300M | 3.4% | 2.7% | 30.7% |
| 2025 | ₩4B | -₩4.1B | -₩4.9B | −103.0% | −64.2% | 47.1% |
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
Based on the confirmed financials provided, SLS Bio's revenue declined every year from KRW 10.75 billion in 2022 to KRW 9.02 billion in 2023 and KRW 8.37 billion in 2024.
Operating profit also shrank steadily, from KRW 2.42 billion (22.5% operating margin) in 2022 to KRW 1.03 billion (11.4%) in 2023 and KRW 288 million (3.4%) in 2024.
In 2025, revenue plunged further to KRW 3.98 billion, and the company swung to an operating loss of KRW 4.11 billion (-103.0% operating margin) and an owners' net loss of KRW 4.90 billion, marking a clear turn to losses.
On a quarterly basis, revenue collapsed from KRW 1.59 billion in Q2 2025 to KRW 296 million in Q3 and KRW 341 million in Q4, a direct reflection of the drug quality-testing business suspension. Operating losses widened to KRW 1.80 billion in Q3 2025 and KRW 1.41 billion in Q4.
In 2026, revenue recovered sequentially to KRW 958 million in Q1 and KRW 1.29 billion in Q2, yet operating losses remained substantial at KRW 950 million and KRW 898 million respectively, indicating that the revenue rebound has not yet translated into an immediate improvement in profitability.
Owners' net losses in 2026 also stayed at similarly large levels, at KRW 939 million in Q1 and KRW 973 million in Q2.
On the cash flow side, operating cash flow turned negative at KRW -2.19 billion in 2025, a sharp reversal from the positive flows seen between 2022 and 2024; as a result, equity fell sharply from KRW 12.51 billion in 2024 to KRW 7.64 billion in 2025, while the debt ratio rose again from 30.7% to 47.1%.
The drug quality-management testing industry has high barriers to entry requiring expensive equipment, an established track record, and government certification, resulting in a market with only a handful of competing institutions domestically.
The fact that global pharmaceutical companies turned to alternative testing institutions after SLS Bio's business suspension, yet faced delays transferring testing methods and securing equipment, illustrates both the barriers to entry and the difficulty of substitution in this industry.
In fact, the suspension of the company's quality-testing operations was significant enough to trigger supply shortages for both prescription and over-the-counter drugs sold at pharmacies.
The food safety testing market is projected to grow domestically from roughly KRW 600 billion in 2024 to about KRW 1.1 trillion by 2033, driven by the expansion of health functional foods, rising imported food volumes, and tighter government safety standards, while the global market is expected to grow from USD 26.08 billion in 2025 to USD 52.99 billion by 2034.
In the in-vitro diagnostic kit market, product lines are expanding beyond infectious disease diagnostics into veterinary and everyday-use diagnostics following the COVID-19 period, an area with numerous domestic and international competitors.
However, SLS Bio also faces the challenge of rebuilding industry trust after repeated certification-related risks exposed in its core business.
The most pressing upcoming event is the final outcome of the listing eligibility review.
The 10-month improvement period granted by the KOSDAQ Market Committee on October 31, 2025 ended on August 31, 2026, and the company must submit an improvement plan implementation report along with an expert verification statement within 15 business days of that date; the Market Committee is then expected to make a final delisting decision within 20 business days of the submission.
Trading has been suspended since June 10, 2025 and will remain so until that final decision is announced.
Hana Securities, in a December 26, 2025 'IPO underwriter update' report, stated that the most important condition for resuming trading is whether revenue recovers to pre-suspension levels of roughly KRW 2 billion (plus or minus KRW 300 million) per quarter.
The recovery in revenue to KRW 958 million in Q1 2026 and KRW 1.29 billion in Q2 2026 can be seen as gradually approaching that benchmark, though it has not yet reached the range cited by Hana Securities.
On the diversification front, the food testing segment is targeting self-quality-testing institution accreditation in Q3 2026 and an application for food testing specialist institution accreditation in Q4, with the company saying it expects to obtain the latter accreditation in the first half of 2027.
In diagnostics, development and market launch of everyday-use products such as combo kits and bovine pregnancy test kits are underway, and the company also plans to re-enter the new drug development support market.
The re-certified drug quality-testing institution status is valid until October 23, 2029, suggesting limited near-term re-certification risk for that particular license.
Since the shares have been suspended from trading since June 2025, the displayed current price should be understood as the last reference price before the halt, which is important context for interpreting any valuation metrics.
The self-calculated price-to-book ratio comes in higher than the figure published by the Korea Exchange, reflecting the sharp year-over-year decline in equity caused by the 2025 net loss, which can be characterized as an expanded premium relative to net assets.
On a historical basis, the company moved from profitability in 2022-2024 to a loss in 2025, with losses continuing into the first half of 2026, meaning conventional earnings-based valuation comparisons currently carry limited meaning.
On the dividend side, no per-share cash dividend has recently been disclosed, so dividend-yield-related metrics are not currently calculable.
As a result, present valuation metrics sit in a range heavily dependent on two unresolved uncertainties: whether earnings normalize, and the outcome of the listing eligibility review.
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
On October 24, 2025 the company received re-certification as a designated drug test and inspection institution, with the approval valid through October 23, 2029. This has removed, for the time being, the legal accreditation risk that had threatened the core quality-testing business.
Sequential revenue recovery in Q1 and Q2 2026 shows that the effect of re-certification is beginning to show up in actual results.
The company has secured international proficiency-test accreditation and designation as an agricultural and marine product safety testing institution to enter the food safety testing market, and is targeting self-quality-testing institution accreditation in Q3.
In diagnostics, it is also developing and launching everyday-use products such as combo kits and bovine pregnancy test kits. If this diversification bears fruit, the revenue structure currently concentrated in a single business could gradually improve.
Drug quality-management testing is classified as a high-barrier industry requiring expensive equipment, specialized personnel, and an established track record.
Indeed, during the business suspension period, some global pharmaceutical companies that turned to alternative testing institutions experienced delays in transferring testing methods and securing equipment.
This suggests that relationships with existing clients may not have been fully replaced even after re-certification.
Shares have been suspended from trading since June 10, 2025, and even now, after the improvement period ended on August 31, 2026, the final delisting decision has not been made.
The company must submit implementation documents within 15 business days of the improvement period's end date, after which the KOSDAQ Market Committee is expected to reach a conclusion within 20 business days, leaving investors unable to know whether trading will resume for a substantial period.
There is also precedent for additional listing eligibility review triggers, such as a prior quarter falling short of the minimum revenue requirement, underscoring significant procedural uncertainty.
Even though revenue recovered to KRW 958 million and KRW 1.29 billion in Q1 and Q2 2026 respectively, operating losses remained large at KRW 950 million and KRW 898 million. The full-year 2025 operating margin deteriorated to -103.0% and operating cash flow was also negative at KRW -2.19 billion.
The fact that revenue recovery has not immediately translated into a return to profitability suggests that fixed-cost burdens or new business investment costs remain substantial.
Equity fell sharply from KRW 12.51 billion in 2024 to KRW 7.64 billion in 2025, while the debt ratio over the same period rose again from 30.7% to 47.1%.
In addition, the withdrawal of a planned land purchase for a new Giheung headquarters building resulted in roughly KRW 1.1 billion in sunk costs, indicating missteps in capital allocation as well. Continued losses could increase the need for additional external funding.
The KOSDAQ Market Committee is expected to make a final delisting decision within 20 business days of the improvement plan implementation report submission. Given that the Corporate Review Committee previously voted for delisting in September 2025, a negative outcome this time cannot be ruled out.
Trading suspension will continue until the result is announced, meaning investor liquidity constraints persist in the meantime.
The company previously had its business suspended in June 2025 after failing to meet certain evaluation criteria for its testing and inspection institution status.
Even with re-certification secured, the possibility that similar issues could again jeopardize its accreditation in future periodic evaluations cannot be excluded. The new food testing business also requires accreditation from relevant authorities, carrying the risk of schedule delays.
Financial buffers have weakened, with operating cash flow turning negative in 2025 and equity declining sharply. If the revenue recovery is delayed or additional investment costs for new businesses arise, the need for external financing could increase.
While trading remains suspended, the company's ability to raise capital through the equity market may also be constrained.
Check whether and how the company submits its improvement plan implementation report and expert verification statement. Delayed or insufficient submissions could be a negative signal for the upcoming review.
Check the KOSDAQ Market Committee's final decision on delisting and whether trading resumes. This is the key event determining whether the stock can continue trading at all.
Check how close revenue comes to the recovery benchmark cited by Hana Securities (roughly KRW 2 billion plus or minus KRW 300 million per quarter) and whether the scale of operating losses is narrowing.
Check whether the company obtains self-quality-testing institution accreditation, the first step in expanding its food testing business. Meeting this target schedule would indicate execution strength for the diversification strategy.
Check whether the application for food testing specialist institution accreditation proceeds as planned, and whether it remains consistent with the company's expectation of obtaining approval in the first half of 2027.
SLS Bio experienced a business suspension and trading halt in June 2025 due to issues with its drug quality-testing institution accreditation, received re-certification in October of that year and was granted an improvement period, yet even now, after that period ended on August 31, 2026, the final delisting decision has not been made.
On the earnings front, both full-year 2025 revenue and operating profit deteriorated sharply into losses, and while revenue showed a sequential recovery in the first half of 2026, operating losses remained substantial.
The company is attempting to diversify its revenue base through food safety testing and diagnostic kits, and is progressing step by step through the related accreditation roadmap.
However, weakening financial buffers are clearly observable, including declining equity, a rising debt ratio, and a swing to negative operating cash flow.
For investors, the most important variables to monitor going forward are the outcome of the listing eligibility review, the timing of any trading resumption, and whether the revenue recovery translates into a normalization of profit and loss. This report is intended for informational purposes only and does not include a buy or sell recommendation.
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.