KOSPIBiotech & Pharma317450

Myungin Pharm

₩43,450▼ 3.01%2026-10-02 close

Market Cap

₩637.3B

Turnover

₩400M

Volume

9,817 shares

Shares out.

14.6M

PER

8.0×

PBR

0.8×

EPS

₩5,578

Dividend Yield

3.36%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩1,500 per share · Prices as of the 2026-10-02 close

Report overview

MyungIn Pharm: CNS Leader at a Growth-Pipeline Crossroads

MyungIn Pharm, the domestic leader in central nervous system (CNS) prescription drugs, grew both revenue and net profit in 2025, with the Balan Plant No.2 expansion and its global new-drug pipeline emerging as the next growth axis.

1
2025 consolidated revenue reached KRW 287.2 billion with operating profit of KRW 92.5 billion (32.2% margin), expanding both top line and profit versus the prior year.
2
Quarterly revenue climbed sequentially to KRW 72.1 billion in Q1 2026 and KRW 76.1 billion in Q2 2026, sustaining the growth trend.
3
CNS-related psychoneurotic drugs account for roughly 67% of total sales, reflecting a broad portfolio with low reliance on any single product.
4
The Balan Plant No.2, a KRW 130 billion project, is the key facility for entry into pellet-formulation CDMO business, targeting commercial production in 2027.
5
The schizophrenia drug candidate evenamide is in global Phase 3 trials, while the Parkinson's combination drug P2B001 is undergoing the regulatory approval process.

Business structure

Founded in 1985, MyungIn Pharm is a specialized manufacturer of central nervous system (CNS) prescription drugs that listed on the KOSPI in October 2025.

The company covers a broad CNS portfolio spanning psychiatric drugs for schizophrenia, depression, ADHD, anxiety, and insomnia, as well as neurological drugs for Parkinson's disease, dementia, and epilepsy, holding the No.1 market share in Korea's psychoneurotic drug segment according to IQVIA data.

Prescription drugs make up the bulk of revenue, with psychoneurotic drugs alone contributing roughly 67-68% of total sales as the core pillar.

In over-the-counter products, flagship brands 'Egatan F' for gum disease and 'MakinQ' for constipation maintain strong consumer recognition, though their growth has recently slowed.

On the production side, the company operates a one-stop value chain from active pharmaceutical ingredient (API) production through finished drug manufacturing and distribution, keeping cost ratios low, and holds more than 30 sole-supplier drug licenses in the CNS space that reinforce its market position.

In the competitive landscape, rivals in the psychoneurotic drug market include Daewoong Bio, Whanin Pharm, Janssen Korea, Eisai Korea, and Viatris, most of which are also growing alongside an aging-driven market expansion.

In 2026, the company brought in former Hanmi Pharm vice chairman Kwan-soon Lee as co-CEO, shifting toward a professional management structure to accelerate drug development and CDMO business expansion.

Through its 2026 corporate value-up plan, the company set targets including CNS market segmentation strategy, export expansion based on the new pellet plant, and maintaining a compound annual growth rate (CAGR) of at least 6%.

Earnings trend

Quarterly revenue · Operating profit

25Q225Q3₩72.1B₩23.7B25Q4₩72.1B₩25.1B26Q1₩76.1B₩27.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩269.4B₩92.8B2024₩287.3B₩92.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	—	—	—
2025Q3	—	—	—
2025Q4	₩72.1B	₩23.7B	32.8%
2026Q1	₩72.1B	₩25.1B	34.8%
2026Q2	₩76.1B	₩27.6B	36.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2024	₩269.4B	₩92.8B	₩68.7B	34.4%	12.9%	9.4%
2025	₩287.3B	₩92.5B	₩81.4B	32.2%	10.3%	6.0%

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

Consolidated revenue for 2025 reached KRW 287.25 billion, up 6.6% from KRW 269.4 billion in 2024, while operating profit of KRW 92.5 billion stayed roughly flat versus KRW 92.75 billion the prior year, yielding a 32.2% operating margin.

Net profit attributable to owners rose 18.6% to KRW 81.4 billion from KRW 68.7 billion in 2024, outpacing revenue growth, which appears attributable to positive non-operating factors such as financial income.

The operating margin nonetheless slipped from 34.4% in 2024 to 32.2% in 2025, reflecting selling and administrative expense growth, including personnel costs, that outran the pace of sales growth.

By quarter, Q4 2025 posted revenue of KRW 72.1 billion, operating profit of KRW 23.7 billion (32.8% margin), and owners' net profit of KRW 23.3 billion, closing the year on solid footing.

Moving into 2026, Q1 revenue was KRW 72.1 billion with operating profit of KRW 25.1 billion (34.8% margin) and owners' net profit of KRW 22.7 billion, while Q2 revenue reached KRW 76.1 billion with operating profit of KRW 27.6 billion (36.3% margin) and owners' net profit of KRW 24.3 billion, showing simultaneous improvement in both sales and operating margin.

Total equity jumped from KRW 531.8 billion at end-2024 to KRW 794.4 billion at end-2025, reflecting capital inflow from the October 2025 listing.

The debt ratio fell further from 9.4% in 2024 to 6.0% in 2025, underscoring a near debt-free financial structure, while operating cash flow of KRW 81.6 billion in 2025 confirmed cash generation broadly in line with net profit.

Industry analysis

Korea's psychoneurotic (CNS) drug market was valued at roughly KRW 163.3 billion in 2025 according to IQVIA data, with MyungIn Pharm ranked No.1, followed by Daewoong Bio, Whanin Pharm, Janssen Korea, Eisai Korea, and Viatris, all of which posted sales exceeding KRW 100 billion.

Structural demand growth driven by an aging population and rising incidence of dementia, Parkinson's disease, schizophrenia, and depression underpins broad expansion across the sector, with most top players growing in tandem.

The domestic CNS market is characterized by a multi-product, small-lot prescription pattern, favoring companies with wide generic and improved-drug portfolios over single blockbuster products.

Within this structure, MyungIn Pharm is seen as holding a relative edge with a combination-prescription portfolio exceeding 200 products and more than 30 sole-supplier drug licenses.

Meanwhile, pellet-formulation CDMO has become a core technology for combination and controlled-release drug development, particularly in Europe, and is regarded as one of the fastest-growing, high-value-added segments in the global CDMO market, forming the backdrop for MyungIn's new business push.

That said, Korea's pharmaceutical industry overall remains exposed to structural pressures such as drug price cuts and intensifying generic competition, risks from which the CNS segment is not exempt.

Outlook

In its corporate value-up plan disclosed in March 2026, the company stated it would consolidate its No.1 CNS market position through a segmentation strategy and expand pellet-based CNS product development and exports on the back of the new pellet plant.

Planning targets included maintaining a compound annual growth rate (CAGR) of at least 6% and gradually expanding R&D intensity to secure improved drugs and new pipeline candidates.

The Balan Plant No.2, a KRW 130 billion project (KRW 70 billion for construction, KRW 60 billion for equipment), is set to complete exterior and cleanroom work during 2026, followed by Ministry of Food and Drug Safety GMP approval and a target commercial-production start in 2027, with annual capacity of 600 million capsules (200 million in pellet form) once completed.

In the pipeline, the schizophrenia drug candidate evenamide (NW-3509), developed in partnership with global pharmaceutical company Newron, is in Phase 3 trials across 22 countries including Korea, with the first patient enrolled domestically in April 2026.

For the Parkinson's combination drug P2B001 (Paxroya), MyungIn secured related intellectual property following the liquidation of Israeli developer Pharma Two B, and according to a May 2026 report by Yaksa Gongron, a domestic marketing authorization filing was scheduled for September 2026.

R&D spending has risen steadily from KRW 9.89 billion in 2023 to KRW 10.91 billion in 2024 and KRW 17.74 billion in 2025. On dividend policy, the company set a target of maintaining a payout ratio of at least 25% from 2026 through 2028, having already exceeded that level with a 26.9% payout ratio in 2025.

Valuation

PER

8.0×

PBR

0.8×

ROE

10.3%

EPS

₩5,578

BPS

₩55,919

Dividend per share

₩1,500

Since its October 2025 listing, MyungIn Pharm has experienced notable share-price volatility, including an initial surge followed by a correction, with supply-and-demand factors such as the expiration of the three-month lock-up period having influenced trading.

Looking at the profit structure over the most recent four quarters, net profit expanded from 2024 into 2025, and quarterly results have continued to improve sequentially through 2026.

The stock's price relative to net assets is worth viewing alongside traditional pharmaceutical peers such as United Pharm, Boryung, and Chong Kun Dang, which were selected as comparable companies during the IPO pricing process, and the company itself has signaled an intent to expand shareholder returns, qualifying as a high-dividend company under the Special Tax Treatment Control Act.

That said, given the relatively small free float in the early post-listing period has historically driven larger short-term volatility, this liquidity characteristic should be factored in when interpreting valuation metrics.

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

Dominant CNS Market Position and High-Margin Structure

MyungIn Pharm maintains an overwhelming No.1 position in Korea's psychoneurotic drug market, having built entry barriers through more than 30 sole-supplier drug licenses and a combination-prescription portfolio exceeding 200 products.

Reports indicate the company has sustained operating margins in the 30% range every year since 2018, aided by a one-stop value chain from in-house API production through finished products.

Rising demand for chronic neurological conditions such as dementia, Parkinson's disease, and schizophrenia, driven by an aging population, provides a structural growth backdrop for the business.

Pellet CDMO New Business and Drug Pipeline

The KRW 130 billion Balan Plant No.2 targets commercial production in 2027 and will provide annual capacity of 200 million pellet-form capsules once complete, laying the groundwork for expansion into controlled-release formulation CDMO business.

The schizophrenia drug candidate evenamide is in Phase 3 trials across 22 countries globally, while the Parkinson's combination drug P2B001 is reportedly undergoing domestic marketing authorization procedures.

Should these new business and drug pipeline efforts progress successfully, they could add further growth drivers on top of the existing generics-centered business.

Solid Financial Structure and Expanding Shareholder Returns

The debt ratio remained low at 6.0% at end-2025, and the company has reportedly maintained a debt-free management approach without external borrowing for several years. Operating cash flow of KRW 81.6 billion in 2025 was broadly in line with net profit, indicating stable cash generation.

The company has set a target payout ratio of at least 25% for 2026-2028, and its 2025 payout ratio of 26.9% already exceeded that target.

Bear factors

OTC Segment Stagnation and Advertising Cost Burden

Reports have indicated a decline in sales of the flagship over-the-counter Egatan product line, with critics noting that advertising spending of roughly KRW 30 billion annually continues to be directed toward a segment with slowing growth.

Even accounting for the intercompany offsetting structure through a subsidiary, questions have been raised about the efficiency of advertising cost allocation. The declining growth contribution from the OTC segment relative to CNS business suggests a need for portfolio rebalancing.

Margin Pressure from Rising SG&A Including Personnel Costs

In Q3 2025, salary expenses rose 54.3% year-over-year, contributing to a slight decline in operating profit, and the annual operating margin also slipped from 34.4% in 2024 to 32.2% in 2025.

If fixed-cost items such as personnel and R&D expenses continue rising in step with revenue growth, the pace of margin improvement could remain constrained going forward. The steadily rising R&D expense ratio relative to sales could also weigh on profitability in the near term.

Post-Listing Supply-Demand Volatility and Liquidity Characteristics

There have been confirmed cases where supply-and-demand events, such as lock-up expirations shortly after listing, significantly affected the share price, and the relatively small free float has produced pronounced volatility.

Ongoing disclosures of changes in major shareholders' stakes also indicate a need to monitor future supply-demand effects from ownership structure shifts. Such liquidity constraints call for caution when interpreting valuation metrics.

Risk factors

Drug Pricing Policy and Generic Competition

Korea's pharmaceutical industry remains continuously exposed to structural pressures from government drug price cuts and intensifying generic market competition.

In the CNS market as well, competitors such as Daewoong Bio and Whanin Pharm are growing in parallel, requiring sustained sales and marketing investment to maintain market share. Changes in drug pricing policy could directly affect MyungIn Pharm's core psychoneurotic drug revenue segment.

Clinical Trial and Approval Delay Risk

While the global Phase 3 trial for evenamide and the P2B001 marketing authorization process are reportedly proceeding on schedule, drug development and approval processes always carry risk of delays beyond expectations or results falling short of anticipated outcomes.

The liquidation of former partner Pharma Two B illustrates that overseas partnership risk can materialize in practice. The commercialization timing and outcomes of the drug pipeline remain unconfirmed variables.

Capital Expenditure Execution Risk

The Balan Plant No.2 is a large-scale investment of KRW 130 billion, and while progress has reportedly been on schedule, completion, GMP approval, and commercial production must still pass through several stages.

Delays in the capital expenditure project or unexpected additional costs could affect the timeline for entry into the CDMO new business. Securing actual orders and utilization rates for the new production capacity also remains a variable requiring future confirmation.

What to watch next

H2 2026 (around the Q3 2026 earnings release)
It will be worth checking whether the revenue and operating margin improvement trend seen through Q2 2026 continues into Q3, and whether the pace of SG&A cost growth, including personnel expenses, stabilizes.
After September 2026
The domestic marketing authorization filing and progress for the Parkinson's combination drug P2B001 should be monitored. A key point to watch is whether the September filing timeline reported by Yaksa Gongron in May 2026 is actually met.
During 2026 (as Balan Plant No.2 construction progresses)
Progress on completing exterior and cleanroom construction at Balan Plant No.2, along with the Ministry of Food and Drug Safety GMP approval process, should be monitored, as these are leading indicators for whether the 2027 commercial-production target will be met.
Progressively, as the global trial advances
Additional disclosures or news regarding patient enrollment and progress in the 22-country global Phase 3 trial for the schizophrenia drug evenamide should be watched.
At each quarterly dividend and shareholder-return disclosure
It will be important to confirm how the target of maintaining a payout ratio of at least 25% for 2026-2028 is actually implemented in dividend decisions.

Overall view

MyungIn Pharm grew both revenue and net profit in 2025 on the strength of its firmly established No.1 position in Korea's psychoneurotic drug market, and quarterly revenue and operating margins continued to improve sequentially through H1 2026.

The financial structure remains solid, supported by a low debt ratio and stable operating cash flow, and the company has disclosed plans to expand shareholder returns, including a target payout ratio of at least 25% for 2026-2028.

On the growth front, entry into pellet CDMO new business via the Balan Plant No.2 and the drug pipeline including evenamide and P2B001 are emerging as mid-to-long-term growth axes, though these initiatives remain in pre-commercialization stages with execution risk still present.

On the other hand, stagnating sales in the flagship Egatan OTC line, margin pressure from rising personnel costs, and post-listing supply-demand volatility are factors that warrant balanced consideration.

Overall, while the company's dominant CNS position and solid earnings underpin its fundamental business strength, the pace of progress in new business and drug pipeline initiatives, along with cost structure management, stand as key variables that will shape its earnings trajectory going forward.

Sources

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

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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.