1. What Happened?: A Return to Profitability in H1 2025

Jeil Pharma Holdings reported a consolidated net profit of KRW 7.5 billion in the first half of 2025, reversing net losses from 2022 and 2023. The strong performance of its subsidiary, Jeil Pharmaceutical, and successful technology exports of new drugs were key factors in this turnaround.

2. Why?: Drivers of the Turnaround and Growth Prospects

2.1 Improved Fundamentals: Revenue and operating profit improved year-over-year to KRW 341.8 billion and KRW 14 billion, respectively. The debt-to-equity ratio also decreased to 77.1%, indicating improved financial health.

2.2 New Drug Development Progress: Jeil Pharmaceutical’s overseas technology transfer of ‘Jacubo’ and licensing out of ‘JPI-289’ contributed to securing future growth drivers.

2.3 Subsidiary Performance: The stable performance of Jeil Pharmaceutical and Jeil & Partners positively impacted the return to profitability.

3. What’s Next?: Investment Considerations and Key Monitoring Points

3.1 Potential Risks: Continued negative operating cash flow, uncertainties surrounding new drug development, and intensifying competition in the pharmaceutical market are key risk factors to consider.

3.2 Key Monitoring Points:

  • ○ Clinical progress of Jeil Pharmaceutical’s new drug pipeline and results of technology export contracts
  • ○ Improvement in operating cash flow
  • ○ Changes in market share and profitability
  • ○ Impact of interest rate and exchange rate fluctuations

4. Investor Action Plan: A Cautious Approach is Necessary

While Jeil Pharma Holdings shows positive growth potential, a cautious approach to investment is necessary considering the potential risks. Investors should continuously monitor the key points outlined above when formulating their investment strategies.