Tdspharm

Founded in 2002, TDS Pharm develops and manufactures transdermal drug delivery system (TDDS) products, operating primarily on an original design manufacturing (ODM) basis for its self-developed formulations.

The company differentiates itself as the only domestic firm using a Hot-Melt process, which relies on thermoplastic resin rather than organic solvents for adhesives, reducing skin irritation.

Its core products are cataplasma (poultice-type patches) and plaster-type patches; based on previously disclosed quarterly data, cataplasma accounted for roughly 73.5% of revenue, plaster about 17.1%, and prescription pharmaceuticals about 9.4%.

The company holds an estimated 70% share of the domestic herbal compound cataplasma market, making it the category leader. Its main customers are Cheil Health Science and Yuhan Corporation, with revenue tied to their order volumes under the ODM structure.

More recently, TDS Pharm has partnered with Samyang Holdings to supply the "Nicostop" nicotine smoking-cessation patch, extending into over-the-counter and prescription patch markets. The company also manufactures oral solid-dosage prescription drugs such as sitagliptin and combination tablets.

Competing against established brands such as SK Chemical's "Trust" patch line and other domestic and overseas TDDS manufacturers, TDS Pharm has built its position through ODM production capability and specialization in herbal-formula patches.

Annual revenue moved from KRW 30.0 billion in 2023 (16.7% operating margin) to a temporary dip of KRW 27.5 billion in 2024 (13.6% margin), before recovering slightly to KRW 27.6 billion in 2025 while holding the 13.6% margin.

Net income attributable to owners fell from KRW 4.69 billion in 2023 to KRW 3.72 billion in 2024, then rebounded to KRW 4.27 billion in 2025, signaling a profit recovery trend.

On a quarterly basis, revenue bottomed at KRW 5.58 billion with operating profit of KRW 323 million in the second quarter of 2025, before improving markedly to KRW 8.08 billion revenue and KRW 1.64 billion operating profit in the third quarter, and KRW 8.68 billion revenue with KRW 1.61 billion operating profit in the fourth quarter.

Into 2026, revenue reached KRW 8.07 billion in the first quarter (operating profit KRW 1.34 billion) and KRW 8.08 billion in the second quarter (operating profit KRW 1.04 billion), showing sharp year-over-year revenue growth even as quarterly operating profit moderated somewhat.

According to publicly disclosed figures, cumulative first-half 2026 revenue reached approximately KRW 16.1 billion, up about 48% year over year, with first-half operating profit of roughly KRW 2.38 billion and net income of about KRW 2.11 billion, already exceeding half of recent full-year profit levels.

The company attributed this performance to online sales channel expansion, growth in its quasi-drug business, price increases on key products, strong sales of herbal-medicine products, and successful military-supply tender wins.

Operating cash flow remained consistently positive at KRW 3.29 billion in 2023, KRW 3.93 billion in 2024, and KRW 3.78 billion in 2025.

Shareholders' equity grew from KRW 22.9 billion in 2023 to KRW 42.8 billion in 2025, while the debt ratio declined from 48.1% to 26.6% over the same period, indicating an improving financial structure.

Transdermal drug delivery systems (TDDS) encompass patches, creams, gels, and microneedles, and according to reports citing market research data, the global market is projected to grow from roughly USD 8.88 billion in 2022 to about USD 10.41 billion in 2026, an annual growth rate of around 4.1%.

The domestic market for transdermal absorption formulations (cataplasma plus plaster) is estimated at around KRW 200 billion, within which TDS Pharm holds a firmly established leading position in herbal compound cataplasma.

Structurally, patches avoid the gastrointestinal side effects associated with oral drugs and the invasiveness of injections, driving steady demand for patch formulations in an aging population that values dosing convenience.

Patches are frequently cited as suitable delivery methods for chronic conditions such as pain, Parkinson's disease, and dementia, where sustained dosing compliance is difficult.

Statistics from the Ministry of Food and Drug Safety indicate that the number of patients prescribed medical narcotics in Korea has surpassed 20 million, underscoring clear growth in the pain-treatment market itself.

Competitively, the market includes both long-established branded products from large pharmaceutical companies, such as SK Chemical's "Trust" line, and ODM-focused specialist manufacturers like TDS Pharm.

As a relative newcomer entering the prescription patch segment, how quickly TDS Pharm can capture share against incumbent large players in formulation and approval competition remains a key point to watch.

The company expects the second half of 2026 to continue its growth momentum, stating that confirmed order volume for the second half is roughly 90% of first-half revenue, and that it anticipates full-year revenue growth in the high-teens percentage range year over year.

Its new growth pillar, the "Nicostop" nicotine patch, generated approximately KRW 1.9 billion in revenue during 2025, marking an early commercialization stage.

On the pipeline side, a dementia patch is at the preclinical study design stage, an asthma treatment tulobuterol patch and a pain-related fentanyl patch are slated to proceed through clinical and approval processes once distribution partners are finalized, and a rotigotine patch for Parkinson's symptom relief is also cited as a candidate project.

In July 2026, the company signed a preliminary research agreement with Myungmoon Pharmaceutical for a low-dose buprenorphine patch designed for seven-day continuous wear, preparing an entry into the pain-treatment market, and around the same time entered a joint research agreement with Keimyung University's industry-academic cooperation foundation for a transdermal formulation targeting keloid scar treatment.

On the production side, the company completed the acquisition of land and buildings in Osong, Cheongju, and began construction of a GMP-compliant warehouse for raw materials and finished products, building infrastructure needed for expanded prescription-patch manufacturing.

Overseas, following existing entries into North America, Canada, and Ukraine, the company has stated that supply contracts with healthcare distributors across six Asian countries are in the final stages, with a stated target of adding up to KRW 28 billion in overseas revenue within five years.

However, most of these new businesses and overseas export targets remain in early-stage execution—contract signing, approval, or clinical progress—so the timing and scale of their revenue contribution will need to be confirmed through future disclosures.