1. What Happened? MEZZION’s 2025 Half-Year Earnings

MEZZION’s 2025 half-year report revealed increased losses, high R&D investment, and financial instability, including the issuance of convertible bonds. While focusing on the development of treatments for single ventricle heart disease, the company is still struggling to generate substantial profits.

2. Why These Results? Analyzing the Causes of Underperformance

MEZZION’s underperformance is primarily due to substantial investments in new drug development and sluggish performance in the feed business. High R&D expenses are essential investments for securing future growth engines, but they have led to short-term profit deterioration. Also, the issuance of convertible bonds increases the debt ratio and raises the possibility of future stock dilution.

3. What’s Next? Investment Risks and Opportunities

  • Risks: Uncertainty of new drug development, high debt ratio, potential stock dilution due to convertible bonds, litigation risks.
  • Opportunities: High growth potential in the rare disease market if new drug development is successful.

Investing in MEZZION is a high-risk, high-return investment. While significant returns can be expected if new drug development is successful, the risk of principal loss is very high in case of failure. Investors should be fully aware of these risks before making investment decisions.

4. What Should Investors Do? Investment Strategy

Investors should closely monitor the progress of new drug development, improvement in financial structure, additional fundraising plans, and macroeconomic variables. Pay particular attention to the possibility of conversion of convertible bonds and the resulting stock dilution effect. It’s crucial to determine the timing and scale of investment through careful analysis.