1. What’s Happening? – The Bonus Issue

Onconics Therapeutics announced a 3% bonus share issue on September 17, 2025. The new shares are expected to be listed on November 3, 2025.

2. Why the Bonus Issue? – Fundamental Analysis

Onconics Therapeutics is experiencing robust growth, driven by the successful domestic launch of its digestive disease treatment, Zastaprazan, and ongoing R&D for its next-generation anticancer drug, Nesuparib. As of H1 2025, the company reported revenue of KRW 18.6 billion and a positive operating cash flow of KRW 1.73 billion, demonstrating improved financial health. The bonus issue is interpreted as a move to enhance shareholder value and increase liquidity.

  • Zastaprazan: Continued positive momentum with steady sales growth since its domestic launch, expansion of indications, and overseas licensing agreements.
  • Nesuparib: A differentiated anticancer drug with orphan drug designation, pursuing technology transfer or joint ventures with global big pharma.
  • Financial Health: Achieving profitability and increased retained earnings, leading to a stable financial structure.

3. What’s the Impact on Stock Price? – Analysis

In the short term, the bonus issue is likely to act as a positive catalyst for the stock price. The increase in the number of outstanding shares and the resulting decrease in price per share can stimulate investor buying interest. However, the potential for short-term volatility should also be considered. In the long term, while there’s no direct impact on the company’s intrinsic value, the increased liquidity and the effort to enhance shareholder value can be interpreted as positive signals.

  • Short-term impact: Potential for stock price increase, increased short-term volatility, possible improvement in trading volume.
  • Long-term impact: No change in intrinsic value, minimal concern about dilution of shareholder value, potential for positive interpretation.

4. What Should Investors Do? – Investment Strategy

Short-term investors can consider capitalizing on the potential stock price increase driven by expectations surrounding the bonus issue, but should be mindful of price volatility around the listing date. Long-term investors should focus on the company’s fundamentals and growth prospects when making investment decisions.

  • Short-term investment: Consider buying (beware of volatility).
  • Long-term investment: Maintain a positive outlook (focus on fundamentals and growth potential).