Yuhan Corporation (000100)

**Business Overview** Yuhan Corporation is a leading South Korean comprehensive pharmaceutical company established in 1926. Its main business areas include the manufacturing and sale of pharmaceuticals, chemical products, industrial chemicals, veterinary drugs, and household goods. Recently, it has also been actively engaged in the Contract Development and Manufacturing Organization (CDMO) business for active pharmaceutical ingredients (APIs). Key products include prescription drugs such as 'Leclaza' (a non-small cell lung cancer treatment), 'Twynsta' (a hypertension treatment), 'Trajenta' (a diabetes treatment), 'Viread' (a hepatitis B treatment), 'Rosuvamibe' and 'Atovamibe' (dyslipidemia treatments), and 'Cough Syrup' (a cold medicine). It also offers over-the-counter (OTC) drugs and health functional foods like 'Bicomsy' (a national nutritional supplement), 'Antiphlamine' (an external analgesic anti-inflammatory), and 'Elena' (a women's probiotic), as well as household goods such as 'Yuhanrox'. As of Q1 2025, the pharmaceutical business segment accounted for approximately 67.5% of total revenue. Based on the consolidated financial statements for Q3 2025, product sales (sales of third-party pharmaceuticals and subsidiary APIs) represented approximately 49.2% of revenue. Its main customers are hospitals and clinics (contributing approximately 63% of total revenue) and general consumers. In the API business, global big pharma companies are key clients. **Core Competencies** Yuhan Corporation's core competencies lie in its innovative new drug development capabilities and strong brand reliability. In particular, 'Leclaza', a new drug for non-small cell lung cancer, has received U.S. FDA approval and is expanding into major global markets including Europe, China, and Japan, demonstrating its technological prowess. Furthermore, it has established strong trust through its market leadership as the top-revenue pharmaceutical company in Korea, its high corporate ethics and social responsibility (being selected as the most respected company in the pharmaceutical sector for 23 consecutive years), and a professional management system that upholds the spirit of its founder, Dr. Yu Il-han. In addition, its high-value-added synthetic new drug API CDMO business, including antivirals and anticancer drugs, is experiencing rapid growth overseas based on its top-tier global research capabilities and quality competitiveness, contributing to stable revenue generation. **Performance Analysis** Yuhan Corporation has shown robust revenue growth in recent years. Revenue grew by 4.7% from KRW 1,775.8 billion in 2022 to KRW 1,859.0 billion in 2023, then by 11.2% to KRW 2,067.8 billion in 2024, and by 5.7% to KRW 2,186.6 billion in 2025, consistently expanding its top line. In terms of profitability, operating income significantly improved, surging by 90.2% from KRW 54.9 billion in 2024 to KRW 104.4 billion in 2025. Net income also recorded high growth, increasing by 235.7% from KRW 55.2 billion in 2024 to KRW 185.3 billion in 2025. The operating profit margin for 2025 was approximately 4.77%, an increase from the previous year. However, in Q3 2025, the company reported revenue of KRW -9.0 billion and operating income of KRW -27.8 billion, which appears to be attributable to specific accounting adjustments or one-off factors. **Financial Soundness** Yuhan Corporation maintains a very sound financial position. While the debt-to-equity ratio slightly increased from 23.16% in 2022 to 36.35% in 2025, it remains at a low level, indicating a stable financial structure. Despite a slight decrease in the current ratio from 273.84% in 2022 to 206.07% in 2025, it still demonstrates excellent short-term debt repayment capability. Return on Equity (ROE) improved from 4.51% in 2022 to 7.84% in 2025, confirming an enhanced ability to generate profits from its capital. **Outlook** Yuhan Corporation is securing future growth drivers through the global market expansion of its innovative new drug 'Leclaza' and is strengthening its stable revenue base through the overseas growth of its high-value-added API CDMO business. The company is expanding its new drug pipeline through continuous R&D investment and an open innovation strategy, and plans to accelerate its penetration into overseas markets with the goal of entering the global Top 50 pharmaceutical companies by 2030. Based on its strong position and trust in the domestic market, the company is expected to continue its growth trajectory by transforming into a global pharmaceutical company.