Hana Pharm

Hana Pharm is an ethical drug manufacturer established in 1996 through the acquisition of Woochun Pharmaceutical, and it listed on the KOSPI in October 2018.

Its narcotic analgesic fentanyl citrate and inhalation anesthetic sevoflurane maintain quasi-monopoly positions with stable demand, and narcotics and anesthetic drugs are considered a stable revenue market because of high entry barriers.

Adding cardiovascular, digestive, analgesic, and neurology/dermatology drugs, the company operates a broad prescription-drug business through more than 380 health-insurance-listed products.

Last year, cardiovascular drugs accounted for the largest share of revenue at 32.3%, while anesthetic and narcotic drugs made up 22.8%, with the two segments serving as stable cash cows. Its main customers are general hospitals, hospitals, and clinics nationwide.

The company operates manufacturing facilities in Hwaseong, including the Hagil plant, and an R&D center in Pangyo, expanding production through new injectable-plant certification while focusing on biologics and drug-delivery-system (DDS)-based improved new drugs.

As a new growth driver, the company is pushing to expand the domestic anesthetic market and overseas licensing in Southeast Asia with 'Byfavo' (remimazolam), a next-generation general anesthetic licensed from Germany's Paion, which is described as addressing side effects of propofol and shortcomings of midazolam.

Pipeline additions of P-CAB-class new drugs and targeted anticancer agents also reflect efforts to move beyond a generics-centered business model.

Consolidated revenue in 2025 reached KRW 239.5bn, extending a four-year growth streak from KRW 210.8bn in 2022, KRW 224.5bn in 2023, and KRW 225.3bn in 2024. However, the operating margin declined every year, from 14.8% in 2022 to 12.0% in 2023, 11.2% in 2024, and 10.8% in 2025.

Net income attributable to owners also fell sharply, from KRW 24.3bn in 2022, KRW 22.3bn in 2023, and KRW 21.3bn in 2024 to KRW 8.8bn in 2025, largely because a net loss in a single quarter dragged down the full-year figure.

By quarter, operating profit rose from KRW 6.0bn in Q2 2025 to a quarterly record of KRW 8.3bn in Q3 2025, yet net income attributable to owners in the same quarter swung to a loss of about KRW -4.3bn. This illustrates how non-operating swings can heavily distort quarterly net income even as operating profit improves.

Operating profit and net income then recovered to KRW 5.8bn and KRW 3.3bn respectively in Q4 2025, before net income jumped to about KRW 10.0bn in Q1 2026 on operating profit of KRW 7.1bn.

Indeed, Hana Pharm's Q1 revenue rose 8.32% year-on-year while SG&A growth lagged behind revenue growth, keeping core cost control intact, but analysts noted that from Q2 onward, once the one-off asset-sale effect fades, core revenue growth and profitability would determine the sustainability of results.

Q2 2026 results showed revenue of KRW 60.9bn, operating profit of KRW 7.3bn, and net income of KRW 8.5bn, maintaining a double-digit operating margin and a solid net income trend.

The domestic narcotic-analgesic and anesthetic market has grown on the back of an aging population and rising demand for endoscopy and cosmetic procedures, with one estimate putting the combined size of the two markets at close to KRW 200bn a year.

Structurally, narcotics and anesthetics have a quasi-monopoly character because the government limits the number of licensed manufacturers per active ingredient, and a small number of firms including Hana Pharm have shared the market for years.

More recently, however, a new drug based on remimazolam has entered a prescription market long dominated by propofol and midazolam, with observers noting this could reshape the existing prescribing landscape.

Hana Pharm holds the domestic exclusive rights to this remimazolam-based drug (Byfavo), putting it in a position to both benefit from and be exposed to risks from any market restructuring.

Meanwhile, the broader domestic pharmaceutical industry, heavily weighted toward generics, is exposed to government drug-pricing policy, and the recent confirmation of a 45% price cut for generic drugs is cited as a burden on the profitability of generics-centered companies.

In 2025, average operating margin among KOSPI-listed pharmaceutical companies fell to 4.97% from the prior year, while Hana Pharm posted a 10.78% margin, placing it among 15 companies with double-digit margins and keeping it near the top of the sector.

In terms of competitive landscape, Mundipharma, Hanlim Pharm, Janssen, and Pfizer are cited as key players in the anesthetic market, while Samjin Pharmaceutical is cited among mid-tier competitors in the cardiovascular and digestive generics market.

In the 2026 value-up plan disclosed in April, Hana Pharm presented strengthening R&D and expanding exports as its core goals.

Specifically, the company outlined global revenue expansion through overseas approvals and distribution networks and next-generation drug development through R&D investment as action items, alongside profitability improvement via cost reduction and production efficiency, and flexible shareholder returns linked to performance.

On the production side, the company is investing KRW 56.8bn in the new Pyeongtaek plant over roughly eighteen months from April 2025 to October 2026 to build EU-GMP/cGMP-compliant facilities, targeting more than a doubling of production capacity in a short period.

Part of this investment is reportedly being funded by roughly KRW 23.3bn raised from selling most of its previously held Samjin Pharmaceutical stake (formerly 8.33%) on the market in May 2026.

In the product pipeline, overseas supply contracts and a contract-manufacturing (CMO) business centered on the general anesthetic 'Byfavo' are gaining momentum, with observers noting the company's formerly domestic-focused business structure is undergoing change.

Indeed, cumulative export revenue through the third quarter of this year reportedly already exceeded last year's full-year export revenue of KRW 700mn, at KRW 1.7bn, signaling early signs of overseas revenue growth off a low base.

That said, given that the export share has never exceeded 1% since listing, whether this goal translates into an actual shift in revenue structure will need to be confirmed through results over the coming quarters.