1. What Happened? : TDS Pharm’s Q2 2025 Earnings

TDS Pharm announced its Q2 2025 earnings on August 14th. With KRW 5.5 billion in revenue, KRW 300 million in operating profit, and KRW 800 million in net profit, the company significantly exceeded market expectations of KRW 0, delivering a positive earnings surprise. However, compared to the same period last year, revenue decreased by 29.6%, operating profit by 80.2%, and net profit by 46.2%.

2. Why These Results? : Analyzing the Performance Drivers

The primary reason for the decline in sales is the sluggish performance of Cataplasma and Plaster product lines, particularly the integrated Cataplasma products. The decrease in operating and net profits can be attributed to both the sales decline and increased expenses, including sales, general, and administrative expenses, as well as R&D investment.

3. What’s Next? : Future Outlook and Investment Opportunities

In the short term, both positive (beating market expectations) and negative (year-over-year decline) factors are at play. In the mid-to-long term, TDS Pharm’s competitive edge in TDDS technology and the development of new pipelines in areas like Alzheimer’s, asthma, and smoking cessation are expected to drive growth. However, rising interest rates, exchange rate fluctuations, and intensifying competition pose risks.

4. What Should Investors Do? : Action Plan

  • Monitor Sales Recovery: Pay close attention to sales recovery trends in Cataplasma and Plaster segments, as well as market response to new products.
  • Track R&D Progress: The progress of clinical trials and regulatory approvals for new pipelines will significantly impact stock prices.
  • Manage Macroeconomic Variables: Continuously monitor the effects of interest rate and exchange rate fluctuations on the company.
  • Observe Global Market Expansion: Expanding into overseas markets and export performance will be key growth drivers.