PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Ildong Pharmaceutical returned to net profit at the controlling-interest level in FY2025, and the next phase hinges on whether its oral GLP-1 obesity candidate and oncology pipeline can secure out-licensing deals.
FY2025 consolidated revenue was KRW 566.9 billion with operating profit of KRW 19.5 billion (operating margin 3.4%), marking a second consecutive year of operating profit.
Net income attributable to owners swung from three consecutive years of losses (2022-2024) to a profit of KRW 27.7 billion in 2025.
After a sharp jump to KRW 22.4 billion in owners' net income in Q3 2025, the quarterly figure moderated to KRW 7.2 billion in Q4 2025, KRW 8.3 billion in Q1 2026, and KRW 5.7 billion in Q2 2026.
The oral small-molecule GLP-1 obesity candidate ID110521156 and oncology asset venadaparib are each pursuing out-licensing and pivotal trial entry, respectively.
The company re-absorbed its R&D subsidiary Yunovia back into the parent entity, re-internalizing its drug development organization.
Ildong Pharmaceutical is a diversified pharmaceutical company focused on manufacturing and selling drugs, pharmaceutical raw materials, health functional foods, and specialized nutritional products.
Its core revenue comes from the pharmaceutical manufacturing segment, with over-the-counter (OTC) brands such as Aronamin, Sami-on, and Hurumarin forming the backbone of domestic sales.
The prescription drug (ETC) segment is pursuing top-line growth through co-promotion partnerships and the launch of improved new drugs, while the health functional food business appears to have completed inventory adjustments in the first half of 2025 and entered a normalization phase in the second half.
New drug research and development is organized through subsidiaries: oncology-focused affiliate Idience holds a PARP inhibitor called venadaparib along with a pan-KRAS inhibitor and dual-payload antibody-drug conjugates (ADCs).
Padoprazan, a treatment for gastroesophageal reflux disease discovered by Yunovia and out-licensed to Daewon Pharmaceutical, is currently in domestic Phase 3 trials. The oral small-molecule GLP-1 obesity and diabetes candidate ID110521156 is positioned as the company's next growth driver.
In April 2026, the company decided to re-merge R&D subsidiary Yunovia back into the parent entity, re-internalizing its development organization.
In the domestic pharmaceutical competitive landscape, the company competes across OTC, ETC, and new drug development with large peers including Yuhan Corporation, Hanmi Pharmaceutical, Daewoong Pharmaceutical, and Chong Kun Dang.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩138.5B | ₩600M | 0.4% |
| 2025Q3 | ₩145.5B | ₩6.8B | 4.6% |
| 2025Q4 | ₩147B | ₩7.9B | 5.4% |
| 2026Q1 | ₩142B | ₩9.2B | 6.5% |
| 2026Q2 | ₩147.9B | ₩2B | 1.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩637.7B | -₩73.5B | -₩141.6B | −11.5% | −74.0% | 230.8% |
| 2023 | ₩600.8B | -₩53.9B | -₩78.9B | −9.0% | −46.6% | 250.8% |
| 2024 | ₩614.9B | ₩13.1B | -₩4.6B | 2.1% | −2.8% | 270.3% |
| 2025 | ₩566.9B | ₩19.5B | ₩27.7B | 3.4% | 11.2% | 139.2% |
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
Ildong Pharmaceutical's annual results show gradual improvement from a large loss in 2022 (revenue of KRW 637.7 billion, operating loss of KRW 73.5 billion, and owners' net loss of KRW 141.6 billion).
Losses continued in 2023 with revenue of KRW 600.8 billion, an operating loss of KRW 53.9 billion, and an owners' net loss of KRW 78.9 billion, but the company turned operating-profitable in 2024 with revenue of KRW 614.9 billion and operating profit of KRW 13.1 billion (though the owners' net loss persisted at KRW 4.6 billion).
In 2025, revenue declined year-on-year to KRW 566.9 billion, yet operating profit expanded to KRW 19.5 billion (an operating margin of 3.4%), and owners' net income turned positive at KRW 27.7 billion.
On a quarterly basis, operating profit was only about KRW 0.6 billion in Q2 2025 but improved to KRW 6.8 billion in Q3 and KRW 7.9 billion in Q4, then expanded further to KRW 9.2 billion in Q1 2026 before contracting again to KRW 2.0 billion in Q2 2026, showing considerable quarter-to-quarter volatility.
Owners' net income jumped sharply to KRW 22.4 billion in Q3 2025, a level that appears to reflect a significant contribution from one-off items such as equity valuation gains and gains from subsidiary divestitures.
Profit levels then normalized to KRW 7.2 billion in Q4 2025, KRW 8.3 billion in Q1 2026, and KRW 5.7 billion in Q2 2026 as the non-operating one-off effects diluted.
The annual debt-to-equity ratio rose from 230.8% in 2022 to 250.8% in 2023 and 270.3% in 2024 before dropping sharply to 139.2% in 2025, indicating an improved balance sheet structure.
This earnings recovery appears to be largely driven by cost efficiency measures including restructuring of loss-making product lines, a shift toward higher-margin product mix, and reduced selling and administrative expenses.
South Korea's pharmaceutical industry has matured across both the OTC and much of the ETC prescription drug markets, with government drug pricing policy reform remaining a persistent policy risk.
The Ildong Pharmaceutical Group cited responding to policy changes such as drug price cuts as a management priority at its 2026 New Year kickoff event.
In contrast, the global obesity treatment market—currently dominated by injectable GLP-1 formulations—is entering a phase of intensified competition to develop orally administered, small-molecule alternatives with greater dosing convenience.
Some competing candidates have recently had their clinical trials discontinued, a development that appears to be highlighting the negotiating leverage of later-stage candidates that have secured favorable safety data.
In oncology, competition among PARP inhibitors continues, and candidates that have secured regulatory incentives such as U.S. FDA orphan drug or fast track designations may gain an edge in commercialization speed.
Domestic competitors including Yuhan Corporation, Hanmi Pharmaceutical, and Daewoong Pharmaceutical are simultaneously pursuing out-licensing deals and overseas expansion through their own new drug and improved-drug pipelines, intensifying industry-wide competition to secure licensing agreements.
The company has set '2026 ID 4.0, competitive advantage performance creation' as its management policy for 2026, designating revenue and profit generation along with securing new growth drivers as key indicators.
The oral GLP-1 obesity candidate ID110521156 is continuing out-licensing discussions with overseas partners, including existing collaborators, based on weight-loss and safety data secured in Phase 1 trials, with partnering meetings held at the June 2026 BIO USA event.
Oncology asset venadaparib is targeting third-line gastric cancer combination therapy, planning a U.S. FDA meeting in the first half of 2026 followed by a pivotal trial IND submission in the second half.
Gastroesophageal reflux disease treatment padoprazan is progressing toward completion of domestic Phase 3 trials, after which the company is also considering launching the drug under its own brand.
Additionally, autoimmune/fibrosis candidate IL21120033 targets an IND filing in Q3 2026, while rare-cancer-focused cyclin K degrader IL2106 targets an IND filing in Q4 2026.
The ETC segment plans to pursue top-line growth in 2026 through the launch of improved new drugs and expanded co-promotion, while the health functional food segment aims for sales recovery following inventory normalization.
For Ildong Pharmaceutical, valuation comparisons based on earnings per share were difficult during the multi-year period of net losses, but earnings-based multiple comparisons have regained relevance since the return to profitability in 2025.
The share price currently trades at a level above one times net asset value, reflecting a certain premium to book value.
Regarding dividends, the company appears to have resumed distributions after a multi-year suspension, and the sustainability of this dividend policy is likely to depend on the quality of future earnings and cash generation.
Some brokerages set target prices using a sum-of-the-parts (SOTP) method that separately values the new drug pipeline and adds it to the operating business value; Sangsangin Securities, in a report dated May 15, 2026 titled '2026, Focused on Profitability Rather Than Top-Line Growth,' presented a target price of KRW 36,000, a downward revision from its prior target of KRW 46,000 set in November 2025.
It should also be noted that such SOTP-based target prices can be sensitive to whether new drug out-licensing deals are ultimately concluded.
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
Restructuring of loss-making product lines and a shift toward a higher-margin product mix produced two consecutive years of operating profit starting in 2024. This was accompanied by reduced selling and administrative expenses and improved cost ratios, lifting the 2025 operating margin to 3.4%.
The debt-to-equity ratio also fell sharply from 270.3% in 2024 to 139.2% in 2025, strengthening financial stability.
License-out discussions with overseas companies are underway based on weight-loss and safety data secured in Phase 1 trials. As some competing candidates have had their trials discontinued, the negotiating position of candidates with demonstrated safety data appears to be strengthening.
If a deal is concluded, the new drug's value could be reflected in the company's overall valuation independent of current earnings.
Subsidiary Idience's PARP inhibitor venadaparib has received orphan drug and fast track designations from the U.S. FDA. Phase 2a combination therapy trials for gastric cancer are underway in Korea and the United States, with a pivotal trial IND submission targeted for the second half of 2026.
The company also has a track record of concluding an out-licensing deal worth approximately KRW 70 billion covering the Eurasian Economic Union and Gulf Cooperation Council regions last year.
Full-year 2025 revenue of KRW 566.9 billion declined from KRW 614.9 billion in the prior year. The transfer of health functional food operations to an affiliate and the termination of a co-promotion product contract have been cited as factors behind the revenue gap.
With the company favoring a profitability-first strategy over top-line growth, the timing of a revenue recovery remains uncertain.
The sharp jump in owners' net income to KRW 22.4 billion in Q3 2025 appears to have been driven significantly by non-operating one-off items such as equity valuation gains and gains from subsidiary divestitures.
Quarterly net income subsequently normalized to KRW 7.2 billion, KRW 8.3 billion, and KRW 5.7 billion as these one-off effects diluted. Whether the core business alone can sustain a durable profit stream requires further confirmation.
Both the oral GLP-1 obesity candidate and oncology asset venadaparib remain in pre-commercialization stages, with the timing and conclusion of out-licensing agreements uncertain.
Entering the global oral GLP-1 development race as a later mover could put the company at a relative negotiating disadvantage compared with earlier entrants. Government drug pricing policy reforms could also affect profitability in the ETC prescription drug segment.
The Ildong Pharmaceutical Group cited responding to policy changes such as drug price cuts as a core management task at its 2026 New Year kickoff. Profitability of ETC products and items listed under national health insurance is directly affected by the direction of government drug pricing policy reform. Depending on the specific timing and scope of policy implementation, earnings volatility could widen.
Major pipeline assets including the oral GLP-1 obesity candidate, venadaparib, and padoprazan all remain in pre-commercialization stages. If clinical delays occur or out-licensing negotiations fall through, expectations regarding pipeline value could be adjusted. Relative competitiveness could also shift depending on clinical results from competing global candidates.
A significant portion of the 2025 return to net profit appears to have been driven by one-off equity valuation gains and gains from subsidiary divestitures. If such non-recurring gains diminish going forward, the scale of net income could contract.
While the balance sheet improved in 2025, renewed expansion of research and development spending to support new drug development could again weigh on costs.
Whether an Investigational New Drug (IND) application for autoimmune/fibrosis candidate IL21120033 has been filed should be confirmed.
At the Q3 earnings release, revenue and operating profit trends and whether any one-off gains or losses were reflected should be examined.
Whether an IND has been filed for rare-cancer candidate IL2106, and whether the pivotal trial IND for venadaparib's third-line gastric cancer combination therapy has been submitted, should be confirmed.
Progress on out-licensing negotiations for the oral GLP-1 obesity candidate ID110521156 should be continuously monitored.
Updates on the progress and expected completion timing of padoprazan's domestic Phase 3 trial should be confirmed.
Ildong Pharmaceutical has emerged from years of losses, following its 2024 return to operating profit with a 2025 turn to net profit at the controlling-interest level.
However, this improvement appears to have been substantially influenced by cost efficiency measures and one-off gains, and quarterly profit levels have shown considerable volatility, warranting further confirmation of the core business's ability to generate sustainable earnings.
Revenue has actually contracted due to the termination of an in-licensed product contract and adjustments to the health functional food business, and the timing of a top-line recovery remains unclear.
Over the medium to long term, whether pipeline assets such as the oral GLP-1 obesity candidate and oncology drug venadaparib can secure out-licensing deals is identified as a key variable that will shape the direction of corporate value.
Some brokerages have presented target prices using a sum-of-the-parts approach that combines pipeline value with operating business value, but this approach is structurally sensitive to whether such deals are ultimately concluded.
Investors should continue to track both the trend in core business profit excluding one-off items in upcoming quarterly results, and concrete clinical and licensing-related events in the pipeline.
Report written 2026-09-05 · Data as of 2026-09-04
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