KOSDAQBiotech & Pharma383930

DT&CRO

₩2,015▼ 2.18%2026-10-02 close

Market Cap

₩25.2B

Turnover

₩200M

Volume

90,000 shares

Shares out.

12.8M

PER

—

PBR

2.7×

EPS

-₩1,337

Dividend Yield

0.00%

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

Report overview

Revenue Growth Coexists With Liquidity Risk

DT&CRO has shown a trend of expanding revenue and narrowing operating losses, but net losses widened in 2026 as valuation losses tied to convertible and warrant bonds grew larger.

1
2025 consolidated revenue reached KRW 47.7 billion, extending four straight years of growth, while operating losses have narrowed each year since 2023.
2
Net losses attributable to owners widened sharply to KRW 13.78 billion in Q1 2026 and KRW 4.10 billion in Q2 2026.
3
In February 2026, the company issued KRW 20.0 billion in convertible and warrant bonds to Eugene Private Equity to cover an earlier CB early-redemption claim of about KRW 15.9 billion.
4
According to a KRX disclosure, a change in the largest shareholder was reported on May 27, 2026, indicating an ongoing shift in corporate governance.
5
The company continues to expand integrated CRO services spanning non-clinical to clinical and regulatory consulting, anchored by Korea's only GLP-certified PK/PD center.

Business structure

Founded in 2017 and listed on KOSDAQ in November 2022, DT&CRO is a full-service contract research organization (CRO) providing non-clinical trials, clinical trials, and regulatory consulting required for approval of pharmaceuticals, medical devices, health functional foods, and cosmetics.

As of cumulative Q1 2026, revenue by center was composed of safety/toxicology at 51.99%, clinical at 25.75%, efficacy evaluation at 15.01%, and analysis at 7.25%, with the safety center accounting for the largest share.

The company performs efficacy testing, pharmacokinetic (PK) testing, and GLP toxicity testing as non-clinical services, along with bioequivalence testing and Phase 1 to Phase 4 clinical trials.

In March 2024, the company signed an MOU with Radius Research in the United States to launch FDA IND consulting services supporting clients' FDA approval and global expansion.

The company completed construction of Korea's only GLP-certified PK/PD center in March 2025, establishing a one-stop service system covering non-clinical through IND stages alongside its safety, efficacy, and analysis centers.

Major customers are pharmaceutical companies and biotech ventures, though specific clients are not disclosed under confidentiality agreements. The company is regarded as a relative latecomer in Korea's CRO market but pursues differentiation through integrated service offerings and specialist hires.

It has also positioned itself as a potential alternative to Chinese CRO providers amid US biosecurity legislation concerns.

Earnings trend

Quarterly revenue · Operating profit

₩10.1B-₩2B25Q2₩12.6B-₩900M25Q3₩15B₩600M25Q4₩10.1B-₩3.6B26Q1₩11.3B-₩6.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩44B₩5.3B2022₩26.6B-₩12.1B2023₩36B-₩11.3B2024₩47.7B-₩5.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩10.1B	-₩2B	−19.6%
2025Q3	₩12.6B	-₩900M	−7.2%
2025Q4	₩15B	₩600M	4.1%
2026Q1	₩10.1B	-₩3.6B	−35.4%
2026Q2	₩11.3B	-₩6.6B	−58.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩44B	₩5.3B	₩5.3B	12.0%	11.3%	39.3%
2023	₩26.6B	-₩12.1B	-₩16.6B	−45.6%	−52.5%	88.9%
2024	₩36B	-₩11.3B	-₩2B	−31.4%	−7.0%	182.8%
2025	₩47.7B	-₩5.7B	-₩2.8B	−12.0%	−11.1%	260.2%

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

Earnings analysis

On an annual basis, revenue was KRW 44.0 billion with an operating profit of KRW 5.29 billion in 2022, but revenue plunged to KRW 26.6 billion in 2023, turning into a large operating loss of KRW 12.1 billion and a net loss attributable to owners of KRW 16.6 billion.

Revenue then recovered for two consecutive years, reaching KRW 36.0 billion in 2024 and KRW 47.7 billion in 2025, while the operating loss narrowed each year from KRW 12.1 billion in 2023 to KRW 11.3 billion in 2024 and KRW 5.7 billion in 2025.

The operating margin also improved from -45.6% in 2023 to -31.4% in 2024 and -12.0% in 2025. However, the net loss attributable to owners widened from KRW 2.0 billion in 2024 to KRW 2.8 billion in 2025, a divergence attributable to non-operating items.

Quarterly, the company posted revenue of KRW 15.0 billion with an operating profit of KRW 0.62 billion and net income of KRW 2.74 billion in Q4 2025, achieving a quarterly turnaround, but revenue fell to KRW 10.1 billion in Q1 2026 with a sharp operating loss of KRW 3.58 billion and a net loss attributable to owners of KRW 13.78 billion.

In Q2 2026, revenue of KRW 11.3 billion came with an operating loss of KRW 6.57 billion and a net loss of KRW 4.10 billion, showing losses widening again.

This expansion in net losses coincides with two separate 'derivative transaction loss' disclosures made in February and May 2026, suggesting that valuation gains and losses tied to the convertible and warrant bonds have become a key driver of earnings volatility.

Industry analysis

Korea's CRO industry experienced a downturn from 2023 as pharmaceutical and biotech companies cut R&D spending, but the sector appears to have entered a gradual recovery phase since the second half of 2025.

Analysts note that drug price cuts for off-patent medicines are pushing pharmaceutical companies to shift from generic-focused strategies toward new drug and combination drug development, which is cited as a driver of increased non-clinical and clinical outsourcing.

Indeed, the company's order backlog stood at KRW 49.6 billion at the end of Q3 2025, up 16% year-over-year. The prospective US Biosecure Act has highlighted regulatory risk for China-based CRO providers, and is frequently mentioned as an opportunity for Korean CRO firms to capture substitute demand.

However, DT&CRO is regarded as a relative latecomer in the domestic CRO industry, viewed as competitively disadvantaged versus leading players in terms of scale and track record.

The broader sector remains in an unstable phase where many listed CRO companies continue posting losses or alternate between profit and loss, so the durability of the industry recovery is not yet confirmed.

Outlook

In a December 2025 statement, the company set a target of earnings turnaround including a net income swing to profit in 2026, projecting that pharmaceutical R&D expansion driven by government drug pricing reform would actually benefit its CRO business.

In February 2026, the company also said it expected a quarterly swing to profit helped by increased demand for improved generic drugs following price cuts and growing aesthetic-sector demand, though the confirmed financial results for Q1 and Q2 2026 instead showed large net losses, diverging from that stated goal.

The company participated in BIO USA 2026 held in San Diego in June 2026 through the Korea Pavilion, presenting its integrated CRO capabilities spanning non-clinical to clinical services to the global market, while also strengthening development strategy and regulatory response capabilities through hires including a specialist with pharmaceutical R&D leadership experience.

The company has also stated it formed an internal task force to incorporate self-developed AI technology into its CRO services. A change in the largest shareholder was disclosed in May 2026, indicating an ongoing governance restructuring that could lead to future capital raises or strategic shifts.

However, given the recurring valuation gains and losses tied to convertible and warrant bonds, further disclosures will be needed to confirm how much of the revenue growth translates into actual net income improvement.

Valuation

PER

—

PBR

2.7×

ROE

-105.1%

EPS

-₩1,337

BPS

₩563

Dividend per share

₩0

DT&CRO has posted net losses in three of the past four fiscal years, and large net losses have continued into the first half of 2026, making it difficult to apply earnings-based valuation metrics in a stable manner.

Indicators reflecting share price relative to net assets show considerable variation depending on the calculation method, reflecting how successive mezzanine bond issuances and derivative valuation gains and losses have repeatedly altered the equity base used for per-share net asset calculations.

There has been no dividend payment history in recent years, which also limits dividend-based comparisons. Historically, the stock traded well below the CB conversion price (with a repricing floor of KRW 7,344), a gap that led bondholders to choose early redemption over conversion.

Overall, the current valuation appears to be a structure that could be significantly affected by whether earnings improvement proves durable and whether liquidity and governance issues are resolved.

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

Bull factors

Four Straight Years of Revenue Growth With Narrowing Operating Losses

Revenue continued its double-digit growth from KRW 26.6 billion in 2023 to KRW 47.7 billion in 2025, while the operating loss was more than halved from KRW 12.1 billion to KRW 5.7 billion over the same period.

The operating margin also improved each year, from -45.6% to -12.0%, showing a clear trend of recovery in core profitability. In Q4 2025, both quarterly operating profit and net profit turned positive, temporarily signaling the possibility of a turnaround.

Integrated CRO Infrastructure and Regulatory Response Capability

Based on the only GLP-certified PK/PD center in Korea, the company has established a one-stop service system covering everything from preclinical and clinical stages to regulatory consulting. Through a 2024 MOU with the US-based Radius Research, it also secured FDA IND consulting capabilities.

Amid growing attention to the US Biosecurity Act issue, there is also discussion of the company positioning itself as an alternative to Chinese CROs.

Order Opportunities from Expanding Pharma R&D

According to the company, the drug price reduction policy is encouraging pharmaceutical firms to expand development of new drugs and combination products, which could translate into preclinical and clinical order opportunities.

As of the end of Q3 2025, the order backlog stood at KRW 49.6 billion, up 16% year-over-year, indicating that order momentum is being maintained.

Bear factors

Widening Net Losses Tied to Derivatives

In Q1 and Q2 2026, net losses attributable to controlling shareholders were KRW 13.78 billion and KRW 4.10 billion respectively, far exceeding the scale of revenue.

Two derivative trading loss disclosures made during the same period are linked to this loss expansion, indicating that valuation gains and losses related to CBs and BWs are acting as a key variable in earnings.

There is a risk that the structure in which revenue growth fails to translate into actual net profit improvement could recur.

Financial Structure Burden From Mezzanine Bond Issuance

In February 2026, the company issued CBs and BWs worth KRW 20 billion to Eugene Private Equity, overcoming a liquidity crisis, but the terms—including a repricing clause and an early redemption right after 18 months—are favorable to investors, leaving concerns about future repayment pressure or equity dilution. The debt ratio has risen sharply from 39.3% in 2022 to 260.2% in 2025.

Uncertainty From Governance Changes

A change in the largest shareholder was disclosed in May 2026, and governance restructuring is underway, but uncertainty remains regarding the details and future management direction.

As a latecomer lacking economies of scale and a track record, further confirmation is needed on how this governance change will affect business stability.

Risk factors

Financial and Liquidity Risk

The debt ratio surged from 39.3% in 2022 to 260.2% in 2025, and operating cash flow has also been mostly negative in recent years. The repricing clause and early redemption right attached to the CBs and BWs imply the possibility of a future need for additional funding or equity dilution.

Volatility in Derivative Valuation Gains and Losses

Two derivative trading losses were disclosed in February and May 2026, expanding the scale of net losses. Since the fair value of the related financial instruments can fluctuate significantly depending on stock price or market variables, similar volatility may recur in future quarterly results.

Industry and Competitive Risk

The domestic CRO industry is sensitive to the pharmaceutical/bio R&D investment cycle, and many listed CRO companies are also in an unstable phase of alternating losses and profits. As a latecomer, DT&C RO may be at a competitive disadvantage compared to leading players in terms of economies of scale and customer base.

What to watch next

Mid-November 2026
Watch the Q3 2026 quarterly report for whether revenue recovery continues and whether derivative-related valuation gains or losses recur.
Second half of 2026
Additional disclosures should be checked to see how the May 2026 change in largest shareholder progresses and how the new controlling shareholder's management direction takes shape.
At each quarterly earnings release
Ongoing monitoring is needed for CB/BW repricing, potential exercise of early redemption rights, and resulting fluctuations in derivative valuation gains or losses.
Around first half of 2027
As the 18-month early redemption right on the CB/BW issued in February 2026 approaches, the company's funding response plans should be checked ahead of that date.

Overall view

DT&CRO has shown a clear improvement trend of expanding revenue and narrowing operating losses since 2023, but the first half of 2026 presented a dual picture as net losses widened due to derivative valuation effects tied to its convertible and warrant bonds.

Integrated CRO service capabilities anchored by Korea's only GLP-certified PK/PD center and order opportunities from expanding pharmaceutical R&D spending stand out as positive factors, while a sharp rise in the debt ratio, recurring derivative loss disclosures, and governance uncertainty following the change in largest shareholder are notable burdens.

The company itself set a target of turning profitable in 2026, yet actual first-half results diverged from that goal, underscoring the importance of continuing to monitor quarterly performance and financial structure improvements.

In particular, the terms of the convertible and warrant bonds, the timing of any future early redemption rights, and the management strategy following the shareholder change will likely be key variables in gauging the company's fundamental direction.

Further confirmation through related disclosures and quarterly reports is advised before making any investment judgment.

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.