1. Treasury Stock Disposal: What Happened?
Koryo Pharmaceutical announced the disposal of 221 treasury shares to provide incentives for retiring employees. As this is a transfer of shares, not a monetary transaction, the short-term impact on the stock price is expected to be minimal.
2. Koryo Pharmaceutical’s Fundamentals: A Closer Look
Positive Factors
- ✅ Expansion into new businesses, including the health functional food market
- ✅ Development of new drugs, such as a combination therapy for dementia
- ✅ Increased R&D investment securing future growth engines
- ✅ Stable financial structure with a 0% debt ratio
Negative Factors and Risks
- ❌ Poor performance in Q1 2025
- ❌ Litigation risk related to choline alfoscerate
- ❌ Volatility in raw material prices and foreign exchange risk
- ❌ Deteriorating market conditions, including a global economic slowdown
3. What Should Investors Do?
Long-Term Investors
Long-term investors can consider investing with a focus on the growth potential of new businesses and R&D achievements. Continuous monitoring of pipeline progress and earnings improvement is crucial.
Short-Term Investors
Given the existing uncertainties such as sluggish performance and litigation risks, short-term investors should be mindful of potential stock price volatility. It is advisable to make investment decisions cautiously after confirming earnings improvement and risk resolution from Q2 onwards.