1. Cytogen’s Q2 Earnings Shock: What Happened?

Cytogen’s Q2 2025 preliminary revenue was 6.2 billion KRW, exceeding expectations. However, operating and net income were -1.9 billion KRW and -2.8 billion KRW, respectively, significantly below market expectations (0 KRW), resulting in a loss. While revenue increased compared to Q1, the widening loss is the main concern. High R&D and SG&A expenses, as well as non-operating losses, are cited as the primary causes.

2. Cytogen’s Core Business and Growth Potential: Why Pay Attention?

Cytogen possesses unique technology in the liquid biopsy field, and its growth potential in the Liquid Biopsy application business and genome technology development and analysis services is particularly high. The synergy effect from the acquisition of GenomeCare and the global expansion strategy, including entry into the US and Japanese markets, are also positive factors.

3. Investing in Cytogen: What to Do?

The current investment opinion on Cytogen (as of August 13, 2025) is ‘Neutral’. While downward pressure on the stock price is expected in the short term due to poor performance, there is a possibility of recovery in the medium to long term, along with the growth of the liquid biopsy market.

  • Short-term Investment Strategy: Be aware of increased stock price volatility following the Q2 earnings announcement. It is crucial to closely monitor future earnings announcements and the progress of litigation risks.
  • Mid- to Long-term Investment Strategy: Consider sales growth and profitability improvement trends, R&D pipeline visibility, financial soundness management, and the impact of macroeconomic variables comprehensively.

4. Action Plan for Investors

If considering investing in Cytogen, investors should check the following:

  • Check for profitability improvement trends in future earnings announcements.
  • Understand the progress and commercialization potential of new pipelines.
  • Monitor financial risks related to convertible bonds and litigation risks.