1. What Happened? Financial Challenges and Declining Performance

Tego Science reported weak performance in the first half of 2025, with revenue of KRW 2.928 billion, operating loss of KRW 1.351 billion, and net loss of KRW 0.996 billion. The decrease in cell therapy sales was the main cause, and the high R&D burden also contributed to the decline in profitability. The issuance of convertible bonds worth KRW 27 billion led to a surge in debt, raising concerns about financial soundness.

2. Why Did This Happen? Market Conditions and Internal Factors

The cell therapy market has high growth potential, but high barriers to entry, including long development periods, strict regulations, and high R&D costs. Tego Science’s declining sales are analyzed to be intertwined with these market characteristics. Also, while the issuance of convertible bonds helped secure short-term funds, it acts as a factor that exacerbates long-term financial burden.

3. What’s Next? Focus on Core Pipeline and CDMO Business

The future of Tego Science hinges on the success of its core pipelines, including rotator cuff tear treatments (TPX-114, TPX-115) and anti-wrinkle cell therapy (TPX-121). Positive clinical results could act as a growth momentum. Also noteworthy is the potential for securing new revenue sources through the expansion of the CDMO business.

4. What Should Investors Do? Prudent Approach and Continuous Monitoring

  • • Monitor clinical trial results and commercialization progress of core pipelines.
  • • Pay attention to efforts to improve financial structure (debt ratio management, cash flow improvement).
  • • Consider interest rate trends and the company’s financial strategy.
  • • Comparative analysis of earnings trends against market expectations.
  • • Consider a cautious approach and a split purchase strategy.