ISU Abxis Q2 Performance: What Happened?

ISU Abxis reported revenue of KRW 22.8 billion, operating profit of KRW 9.4 billion, and net income of KRW 9.2 billion for Q2 2025. This represents a remarkable improvement, with revenue up 68.4% and operating profit swinging back to positive territory from a loss in Q1.

  • Revenue: KRW 22.8 billion (up 68.4% QoQ)
  • Operating Profit: KRW 9.4 billion (compared to a KRW 0.5 billion loss in Q1)
  • Net Income: KRW 9.2 billion

Why the Rebound?

This impressive performance is attributed to a recovery in sales of existing core products and the realization of gains from new products/businesses. The burden of selling, general, and administrative expenses, a major contributor to the Q1 loss, was also mitigated by the increase in revenue, leading to a substantial improvement in profitability.

Future Outlook and Investment Strategies

The strong Q2 results have provided ISU Abxis with positive momentum for its stock price in the short term. In the medium to long term, key factors will include the continued growth of Fabagal, the success of the new drug pipeline, and improvements in the financial structure. The investment recommendation could be upgraded from ‘Neutral’ to ‘Buy’ or ‘Overweight’. However, a cautious approach is necessary considering financial risks and intensifying market competition.

Action Plan for Investors

  • Short-term Investment: Consider short-term investment strategies leveraging the Q2 earnings momentum.
  • Mid- to Long-term Investment: Develop mid- to long-term investment strategies by continuously monitoring pipeline development and financial structure improvements.
  • Risk Management: Risk management, such as portfolio diversification, is essential considering the intensifying market competition and financial risks.