1. What Happened at HEM Pharma?
HEM Pharma reported KRW 2.8 billion in revenue, KRW 2.9 billion in operating loss, and KRW 3.2 billion in net loss for the first half of 2025. The decline in revenue and increased losses compared to the same period last year disappointed investors.
2. Why the Underperformance?
The underperformance is attributed to increased investments in future growth, including the establishment of new overseas subsidiaries, acquisitions, and increased R&D expenses. The high R&D expenditure, representing 33.51% of revenue, can be interpreted as an investment in securing long-term growth drivers.
3. Future Growth Prospects?
- Microbiome Business: Steady growth of the PMAS technology-based MyLab service and overseas expansion are positive signals.
- LBP Business: Clinical progress of HEMP-001 (antidepressant) and HEMP-002 (LARS therapeutic) enhances future growth potential.
- Technological Competitiveness: A portfolio of 120 patents and 73 trademarks demonstrates a strong technological advantage.
4. What Should Investors Do?
While the short-term underperformance is concerning, HEM Pharma’s long-term growth potential remains intact. Investors should make cautious investment decisions considering both the short-term risks and long-term growth prospects. Careful monitoring of future commercialization performance, clinical trial results, and overseas market entry success is crucial.
Frequently Asked Questions
What are HEM Pharma’s core businesses?
HEM Pharma focuses on microbiome healthcare and the Live Biotherapeutic Product (LBP) discovery platform. They specialize in personalized microbiome analysis services using PMAS technology and developing LBP-based new drugs for various diseases.
Why did HEM Pharma underperform in H1 2025?
Investments in future growth, such as establishing new overseas subsidiaries, acquisitions, and increased R&D spending, temporarily impacted performance.
What is the outlook for HEM Pharma?
Considering the high growth potential of the microbiome and LBP markets, combined with the company’s technological competitiveness, the long-term growth outlook is positive. However, managing short-term financial risks and achieving successful commercialization will be critical.