Korea Stock Market Insights

Tag: Koryo Pharmaceutical

  • Koryo Pharmaceutical Returns to Profitability, But Sales Decline Continues: What Should Investors Do?

    1. What Happened at Koryo Pharmaceutical?

    Koryo Pharmaceutical’s sales in the first half of 2025 decreased by 26.8% year-on-year to KRW 14.9 billion. Both product and merchandise sales declined.

    2. The Secret to the Turnaround?

    Despite the decline in sales, Koryo Pharmaceutical achieved a turnaround in operating profit and net income due to improved efficiency in selling, general, and administrative expenses, and an increase in non-operating income. Furthermore, cash and cash equivalents increased significantly, and the debt-to-equity ratio remained low at 14.2%, strengthening the company’s financial health.

    3. Future Growth Potential?

    Koryo Pharmaceutical is actively pursuing new business expansion and R&D investments in medical devices, diagnostic reagents, biopharmaceuticals, and health functional foods. The launch of the medical device ‘Koryo Q Juran’ and entry into the health functional food market are noteworthy achievements. However, potential risk factors, such as the lawsuit related to choline alfoscerate, still exist.

    4. Investor Action Plan

    While Koryo Pharmaceutical shows potential for a turnaround, investors need to closely monitor the reversal of the sales decline trend and the resolution of legal risks. A cautious approach is necessary, making investment decisions after confirming the visibility of new business performance, stabilization of sales, and mitigation of key risks.

    Q: How were Koryo Pharmaceutical’s sales in the first half of 2025?

    A: Sales decreased by 26.8% year-on-year to KRW 14.9 billion.

    Q: Why did Koryo Pharmaceutical return to profitability?

    A: Due to improved efficiency in SG&A expenses and an increase in non-operating income.

    Q: What are Koryo Pharmaceutical’s main businesses?

    A: While focusing on manufacturing and selling pharmaceuticals, the company is diversifying into medical devices, diagnostic reagents, biopharmaceuticals, and health functional foods.

    Q: What should investors be aware of when investing in Koryo Pharmaceutical?

    A: Investors should carefully consider the reversal of the sales decline trend and the outcome of the choline alfoscerate lawsuit.

  • Koryo Pharmaceutical’s Treasury Stock Disposal: Impact on Investors (August 2025 Analysis)

    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.

    Frequently Asked Questions

    Will this treasury stock disposal affect the stock price?

    Due to the small number of shares and the purpose of incentive payments, the short-term impact on the stock price is expected to be limited.

    What is the outlook for Koryo Pharmaceutical?

    While new business expansion and R&D investment are positive, poor performance and litigation risks are negative factors. The future stock price will depend on the interplay of these factors.

    What should investors be aware of?

    Long-term investors should focus on growth potential, while short-term investors should focus on earnings improvement and risk management. Closely monitoring pipeline progress, litigation outcomes, and earnings trends is crucial.