1. What Happened? : Genexine’s H1 2025 Performance Review

Genexine reported KRW 991 million in revenue for H1 2025, a 59% decrease year-over-year. Operating loss reached KRW 15.976 billion, and net loss hit KRW 33.627 billion. Decreased milestone payments from technology transfers and reduced project development service revenue are the primary causes. R&D expenses accounted for a staggering 1,059% of revenue, raising concerns about financial stability.

2. Why This Happened? : Analyzing the Downturn

The decline in revenue stems from reduced income related to technology transfer agreements and lower project development service sales. The deepening operating loss is attributed to continued R&D investment and impairment losses on investments in associates. Increased competition in the biopharmaceutical market also played a role.

3. What’s Next? : Investment Strategy Analysis

Investing in Genexine currently presents a high-risk, high-reward scenario. In the short term, declining sales and deepening losses may exert downward pressure on the stock price. However, long-term growth drivers exist, including GX-E4’s global expansion and the development of the bioPROTAC platform. Investors should closely monitor pipeline development, technology transfer achievements, and efforts to improve financial structure. Analyzing the growth potential of the TPD market and Genexine’s technological competitiveness is crucial.

4. Investor Action Plan

  • Short-term investors: Exercise caution. Consider investment decisions after observing improvements in financial indicators and pipeline development milestones.
  • Long-term investors: If confident in the TPD market’s growth and the bioPROTAC platform’s competitive edge, the current stock decline could present a buying opportunity. However, careful risk management is essential.