1. What Happened? Komipharm’s Q2 Earnings Breakdown

On August 13, 2025, Komipharm announced its Q2 2025 earnings, reporting KRW 13.6 billion in revenue and KRW 1.6 billion in operating profit, significantly exceeding market expectations of KRW 0. However, net income remained negative at KRW -3.2 billion.

2. Why Did This Happen? Drivers of Strong Performance

The robust performance is primarily attributed to the steady growth of Komipharm’s animal health business. Stable sales of existing products like the swine fever vaccine, combined with expansion efforts into the Chinese market and ASF vaccine development, contributed positively. The return to operating profitability can be attributed to improved profitability in the animal health division and cost optimization efforts.

3. What’s Next? Investment Outlook

Positive investor sentiment is expected in the short term, but the burden of new drug development costs could limit stock price growth. In the medium to long term, key variables include PAX-1 clinical trial results and the expansion of the animal health business in overseas markets. The successful commercialization of PAX-1, in particular, holds significant potential to boost Komipharm’s corporate value.

4. What Should Investors Do? Investment Strategies

Komipharm currently maintains a neutral investment rating (Watchful Waiting). Careful monitoring of PAX-1 clinical trial results, expansion of animal health business exports, and improvements in financial status is crucial for making informed investment decisions. A cautious approach, observing for further growth momentum, is recommended over aggressive buying.