1. What Happened?: Deteriorating Earnings and Delisting Threat

SD Biotech’s Q2 2025 preliminary earnings showed revenue of ₩7.8 billion, operating loss of ₩1.8 billion, and net loss of ₩1.4 billion, marking a decline in sales and an increase in losses compared to the same period last year. The Korea Exchange’s decision to review the company for delisting has further shocked investors.

2. Why This Happened?: Weakening Fundamentals and Market Conditions

This crisis stems from a combination of factors, including sluggish core business performance, intensifying competition, and shrinking market demand. The company’s financial structure remains unstable following the rehabilitation proceedings in 2023 and the incorporation of Daewon Pharmaceutical as a subsidiary in 2024. High interest rates and rising raw material prices are also contributing to the challenges.

3. What’s Next?: Investment Risk at its Peak

If delisting is confirmed, trading of the stock will be halted, and it may become impossible to recover investments. The possibility of fundamental improvement currently appears slim, and the stock outlook is very negative.

4. What Investors Should Do: Prudent Decision-Making is Crucial

  • Monitor the final delisting decision and appeal results.
  • Keep an eye on the company’s self-rescue efforts.
  • Recognize the possibility of principal loss and make careful investment decisions.