1. What Happened at Alico Pharmaceuticals?

Alico achieved a profit of ₩2.7 billion on revenue of ₩100.7 billion in H1 2025. Strategic initiatives like revamping ethical pharmaceuticals, establishing a multi-product production system, and stabilizing the CSO sales network proved effective. New ventures in medical devices, health functional foods, and cosmetics also contributed positively.

2. Why is the Return to Profitability Significant?

The shift from a ₩5.8 billion operating loss in H1 2024 to profitability demonstrates management’s success in turning the business around. However, a debt-to-equity ratio of 118.6% and ₩7.77 billion in convertible bonds present financial risks. External factors such as raw material price volatility, government regulations, and intensifying competition require ongoing monitoring.

3. What Does This Mean for Investors?

Alico is in the early stages of a turnaround, with both positive and negative aspects at play. Potential investors should carefully evaluate efforts to improve financial health, the materialization of new business performance, R&D investment efficiency, and risk management capabilities. A ‘wait-and-see’ approach is recommended over hasty investment.

4. Investor Action Plan

  • Short-term: Monitor financial restructuring efforts and new business performance announcements.
  • Mid-to-long-term: Observe progress in the new drug pipeline and changes in market competitiveness.
  • Key Checkpoints: Debt-to-equity ratio reduction trend, profitability of new businesses, and R&D achievements.