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
Jeil Pharm returned to profit in 2025 on the back of its in-house drug Jaqubo, but the loss of legacy co-promotion sales and a return to losses in the first half of 2026 highlight the growing pains of its business model transition.
2025 consolidated revenue fell to KRW 567.2 billion while operating profit turned positive at KRW 20.7 billion, reversing a KRW 18.9 billion loss in 2024.
Co-promotion contracts with Viatris Korea and Takeda Korea ended in the first quarter of 2025, sharply reducing trading (in-licensed) product sales.
In-house GERD drug Jaqubo surged from KRW 8.3 billion in 2024 to KRW 67.1 billion in 2025, emerging as the company's key growth product.
The company posted another operating loss of KRW 7.0 billion in the second quarter of 2026, following a marginal KRW 0.4 billion profit in the first quarter.
The company has set a 2026 sales target of KRW 170 billion for Jaqubo, alongside a production capacity expansion and pending overseas approvals including in China.
Jeil Pharm is a KOSPI-listed prescription drug company whose business is split between selling in-licensed products from multinational pharmaceutical firms (co-promotion) and selling self-developed products.
In recent years the company has pursued a structural shift toward greater self-developed product exposure, with the product sales ratio rising from around 20% in 2022 to roughly 30% recently.
Its flagship in-house product is the GERD drug Jaqubo (zastaprazan), developed by its drug-development subsidiary Onconic Therapeutics, which has quickly established a three-way competitive position alongside K-CAB and Fexuprazan in the domestic P-CAB (potassium-competitive acid blocker) market.
In the chronic disease area, Jeil Pharm also holds a generic diabetes combination drug, Jepoga Duo SR, participating in the SGLT-2/DPP-4 inhibitor market.
On the trading products side, the company had long maintained co-promotion contracts with Viatris Korea (Lyrica, Celebrex, Neurontin) and Takeda Korea (Lansoprazole LFDT, Dexilant DR), but these contracts ended in the first quarter of 2025, sharply shrinking its trading-product revenue base.
Its R&D subsidiary Onconic Therapeutics is also developing a dual-target anticancer drug candidate called Nesuparib, currently in Phase 2, while Jeil Pharm itself is advancing an oral diabetes drug candidate, JP-2266, also in Phase 2.
Manufacturing takes place at facilities including the Munmak plant, and the company is expanding production lines to support growing Jaqubo sales.
Beyond domestic sales, Jaqubo has been licensed out to pharmaceutical partners in more than 20 countries including China, India, and Mexico as part of its global expansion strategy.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩137.6B | ₩4.7B | 3.4% |
| 2025Q3 | ₩134.8B | ₩9.8B | 7.3% |
| 2025Q4 | ₩131.8B | ₩500M | 0.4% |
| 2026Q1 | ₩130.3B | ₩400M | 0.3% |
| 2026Q2 | ₩146.6B | -₩7B | −4.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩722.2B | -₩13.5B | -₩13.1B | −1.9% | −8.3% | 193.6% |
| 2023 | ₩726.4B | ₩8.7B | ₩5B | 1.2% | 3.2% | 210.3% |
| 2024 | ₩704.5B | -₩18.9B | -₩30B | −2.7% | −15.9% | 139.7% |
| 2025 | ₩567.2B | ₩20.7B | ₩23.4B | 3.6% | 11.1% | 103.4% |
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
Consolidated revenue stood at KRW 722.2 billion in 2022, KRW 726.4 billion in 2023, and KRW 704.5 billion in 2024 before falling sharply to KRW 567.2 billion in 2025, largely due to a revenue gap left by expired co-promotion contracts, as trading-product sales dropped sharply that year.
Operating profit, however, swung from losses of KRW 13.5 billion in 2022 and KRW 18.9 billion in 2024 to a profit of KRW 20.7 billion in 2025, and net income attributable to owners similarly turned from a KRW 30.0 billion loss in 2024 to a KRW 23.4 billion profit in 2025.
On a quarterly basis, profit surged in the third quarter of 2025 (revenue KRW 134.8 billion, operating profit KRW 9.8 billion, owners' net income KRW 10.3 billion) before shrinking sharply in the fourth quarter (operating profit of just KRW 0.5 billion), underscoring notable quarter-to-quarter volatility.
In 2026, the company returned to loss, following a marginal first-quarter operating profit of KRW 0.4 billion with a KRW 7.0 billion operating loss and an KRW 8.0 billion net loss attributable to owners in the second quarter.
Management has attributed the first-half loss to increased upfront spending to strengthen competitiveness of new products such as Jaqubo, along with R&D and market-expansion costs.
Over the trailing four quarters (third quarter 2025 through second quarter 2026), cumulative owners' net income has remained positive, but the wide swing between quarters suggests a stable earnings base has not yet been fully established.
On the cash flow side, 2025 operating cash flow was negative at KRW 5.7 billion, diverging from the reported net income, warranting continued scrutiny of earnings quality.
Korea's GERD treatment market is in a phase of rapid growth as P-CAB drugs displace legacy PPI agents.
HK inno.N's K-CAB retained market leadership with first-quarter revenue of KRW 47.5 billion, followed by Daewoong Pharmaceutical's Fexuprazan, with Jaqubo entering as a later mover to form a three-way competitive structure.
Jaqubo's domestic market share rose from 1.3% in the fourth quarter of 2024 to 4.8% in the third quarter of 2025. The global GERD market is estimated at roughly KRW 40 trillion this year, with China representing the largest single market at about KRW 6 trillion.
In the diabetes treatment market, generic competition has intensified following patent expirations of originator drugs, and Jeil Pharm participates through products such as Jepoga Duo SR.
Korea's co-promotion-centered distribution structure leaves companies constantly exposed to the risk of contract renegotiation or transfer by multinational partners, making firms without their own proprietary drugs vulnerable to revenue volatility.
While Korea's pharmaceutical industry overall benefits from solid underlying demand driven by an aging population and rising chronic disease prevalence, drug pricing regulation and an imbalance in negotiating power with multinational partners remain structural constraints.
The company has set a 2026 sales target of KRW 170 billion for Jaqubo, more than double its 2025 level of KRW 67.1 billion.
Jaqubo's outpatient prescription revenue reached KRW 46.8 billion in the first half of 2026, sharply up from KRW 17.2 billion a year earlier, and hit a monthly record of about KRW 9.7 billion in July.
To support sales growth, the company is expanding production lines with completion targeted for the second half of 2026, which should increase supply capacity once finished.
Overseas, a Chinese partner has completed Phase 3 trials for Jaqubo and filed for approval with China's National Medical Products Administration (NMPA), and the outcome could affect future overseas sales and milestone income.
The company is also pursuing expanded reimbursement for the peptic ulcer indication and diversifying formulations such as orally disintegrating tablets, which is expected to broaden the prescribing base.
Whether the losses from first-half preemptive investment can translate into actual sales growth and margin improvement in the second half remains a key point to watch.
As the structural shift toward higher in-house product mix continues, any further attrition in remaining trading-product (co-promotion) revenue is another variable that could affect results.
Jeil Pharm swung from a large loss in 2024 to a profit in 2025, only to return to quarterly losses in 2026, leaving the market's assessment of earnings stability mixed.
The share price trades below the company's book value per share, which could be read as the market maintaining a cautious stance on the durability of the earnings recovery.
No dividend was paid based on the most recent fiscal year, suggesting capital is being prioritized for investment in growth products like Jaqubo and the ongoing business-model transition rather than shareholder returns.
With multiple catalysts ahead—the pace of Jaqubo's sales expansion, the timing of the capacity expansion, and progress on overseas approvals—market assessment could shift along with future earnings.
However, given the wide swings in quarterly results, it is worth tracking the following quarters' performance rather than judging the current level from any single data point.
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
Jaqubo's domestic outpatient prescription revenue reached KRW 46.8 billion in the first half of 2026, well above the prior-year period, and hit an all-time monthly high in July. Domestic market share has also risen steadily from 1.3% in the fourth quarter of 2024 to 4.8% in the third quarter of 2025.
Expansion of the product lineup, including an added peptic ulcer indication and an orally disintegrating tablet, is also broadening the prescribing base.
The product sales ratio has expanded from around 20% in 2022 to roughly 30% recently, moving the company away from a trading-product-dependent structure. This shift contributed to full-year operating profit turning positive in 2025. A higher share of self-developed products can also support a more favorable margin and negotiating position.
Jaqubo has been licensed out to pharmaceutical partners in more than 20 countries including China, India, and Mexico, and its Chinese partner has completed Phase 3 trials and filed for approval with the national regulator.
If approved, this would open commercialization and milestone income opportunities in one of the world's largest GERD markets.
Termination of co-promotion contracts with Viatris Korea and Takeda Korea sharply reduced trading-product revenue in 2025. Given the significant scale of revenue these contracts once carried, it may take time for growth in self-developed products like Jaqubo to fully offset the gap.
First-quarter 2026 operating profit was only KRW 0.4 billion, followed by a KRW 7.0 billion operating loss in the second quarter, with owners' net income also negative for two consecutive quarters.
The company attributes this to preemptive investment to strengthen new product competitiveness, but when this spending will translate into actual results has yet to be confirmed.
Quarterly earnings have swung significantly, from KRW 10.3 billion in owners' net income in the third quarter of 2025 to KRW 7.4 billion in the fourth quarter, then to losses in both quarters of 2026. 2025 operating cash flow was negative at KRW 5.7 billion, diverging from reported net income, warranting further scrutiny of the actual cash-generating capacity behind earnings.
Having long relied on selling in-licensed products from multinational pharmaceutical companies, Jeil Pharm's results remain heavily exposed to partners' decisions to renegotiate or transfer contracts. The industry has repeatedly seen co-promotion partners replaced at short notice.
While the self-developed product mix is rising, changes in the terms of remaining trading-product contracts remain a latent risk.
Korea's P-CAB market remains a three-way competition led by HK inno.N's K-CAB, followed by Daewoong Pharmaceutical's Fexuprazan. Competing drugs currently hold more approved indications than Jaqubo, making the pace of indication expansion directly relevant to competitiveness. Slower-than-expected market share gains could pressure the ability to meet sales targets.
Jaqubo's commercialization in China depends on the outcome of the partner's NMPA approval review, and the timeline and result remain unconfirmed. Commercialization timing in other licensed territories could also be delayed depending on each country's regulatory process.
If the timing of overseas milestone income recognition differs from expectations, forecasting uncertainty could increase.
Check whether third-quarter 2026 operating profit recovers from the second-quarter loss and whether Jaqubo's sales growth continues.
Check whether the Jaqubo production capacity expansion is completed as planned and supports sales growth without supply disruption.
Check whether Jaqubo reaches its full-year sales target of KRW 170 billion and whether the company maintains full-year operating profit in the black.
The approval outcome in China will affect the timing of future overseas sales and milestone income recognition.
Jeil Pharm is in the midst of transitioning from a long-standing trading-product-dependent structure toward one centered on its own new drugs, with the GERD treatment Jaqubo serving as the key growth driver.
Full-year 2025 results showed revenue decline due to expired co-promotion contracts but a turn to operating profit, while the first half of 2026 slipped back into losses amid heavier investment in new products, leaving questions about earnings stability.
Jaqubo's prescription revenue and market share have shown a clear upward trend, and multiple growth catalysts—including production capacity expansion and overseas licensing—are on the horizon.
At the same time, further attrition in remaining trading-product revenue, intensifying competition in the P-CAB market, and uncertainty around overseas approval processes remain factors requiring ongoing monitoring.
Ultimately, how the coming quarters balance Jaqubo's growth against the costs of business-model transition will be the central point to watch. This report contains no investment opinion or buy/sell recommendation and is provided for informational purposes only.
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.