1. KOMIPHARM Announces 12 Billion KRW CB Issuance

On July 30, 2025, KOMIPHARM announced the issuance of 12 billion KRW in convertible bonds (CBs). The issuance method is private placement, with a conversion price of 5,330 KRW and a minimum adjustment price of 3,731 KRW. Both the coupon rate and maturity rate are 0%.

2. Purpose of the CB Issuance: PAX-1 Phase 3 Trials & New Business Investment

While the official purpose of the funds has not been disclosed, it is highly likely that the proceeds will be used for PAX-1 phase 3 clinical trials and investment in their new seasonal appliance business. PAX-1 development is a key growth driver for KOMIPHARM, and significant funding is needed for phase 3 trials. Additional investment is also expected in the early-stage seasonal appliance business.

3. How Will the CB Issuance Affect KOMIPHARM’s Stock Price?

In the short term, there is a possibility of a stock price increase due to expectations surrounding the funding. However, the long-term stock performance will depend on the success of PAX-1 development and the new business. If development fails or the business underperforms, downward pressure on the stock price may increase, and the dilution effect of the CBs should also be considered. Furthermore, macroeconomic factors like US interest rate hikes, rising bond yields, and increased industry competition can also impact the stock price.

4. Action Plan for Investors

  • Closely monitor the results of PAX-1 phase 3 clinical trials and the progress of the new business.
  • Pay attention to changes in macroeconomic indicators and industry trends.
  • Evaluate investment risks from a long-term perspective without being swayed by short-term stock price fluctuations.