1. CMG Pharmaceutical Q2 2025 Earnings: Key Highlights

CMG Pharmaceutical reported KRW 22.6 billion in revenue (a 9.2% decrease YoY), an operating loss of KRW 4.6 billion, and a net loss of KRW 10.8 billion for Q2 2025. Total revenue for the first half of 2025 is less than half of the full-year revenue in 2024, indicating a concerning downward trend.

2. Reasons for the Decline: What Went Wrong?

The sluggish performance of its core pharmaceutical manufacturing and sales segment is the primary driver of the decline. Fixed costs remained high despite declining sales, leading to a wider operating loss. High R&D expenses (10.69% of revenue) are also contributing to the financial burden. While the FDA approval of Aripiprazole ODF is positive, it’s unlikely to translate into immediate financial improvements.

3. Outlook and Investment Strategy: What Should Investors Do?

Investors should exercise extreme caution with CMG Pharmaceutical. Downward pressure on the stock price is expected in the short term. The successful launch of Aripiprazole ODF in the US market will be a critical factor in the mid-to-long term. The high interest rate environment and exchange rate volatility also pose investment risks. Investors should closely monitor the company’s financial improvement plans and commercialization strategy for its new drug pipeline.

4. Action Plan for Investors

  • Avoid short-term investments and maintain a wait-and-see approach.
  • Monitor the company’s financial improvement plans and new drug pipeline commercialization strategy.
  • Continuously track the US sales performance data of Aripiprazole ODF.