1. What Happened? Q2 Earnings Breakdown
JW Pharmaceutical reported Q2 2025 revenue of KRW 19.6 billion, operating profit of KRW 2.6 billion, and net income of KRW 3.1 billion. The dissolution of JW CreaGene significantly impacted revenue, coupled with the continued decline in sales of Esroban ointment. However, the company showed improved profitability on a standalone basis and strengthened its financial structure with a lower debt ratio.
2. Why These Results? Reasons for Underperformance
The decline in revenue is primarily attributed to the dissolution of JW CreaGene. The continued decline in Esroban ointment sales further contributed to the underperformance. Decreased operating profit is attributed to lower sales and poor performance of JW CreaGene.
3. What’s Next? Future Outlook
While concerns remain regarding the Q2 underperformance, the long-term value of the company hinges on the successful development of its CAR-NK cell therapy. Maintaining competitiveness of existing products and expanding the pipeline are also crucial for future growth.
4. What Should Investors Do? Investment Strategies
A cautious approach is recommended in the short term, closely monitoring stock price volatility following the earnings announcement. Long-term investors can maintain a positive outlook based on the potential of CAR-NK therapy, but continuous monitoring of tangible results is crucial.