[E-Daily Reporter KIM YOON-JEONG ] KIWOOM Securities projected that CHONGKUNDANG(185750)is expected to post solid second-quarter earnings thanks to stable growth in key products, including Wegovy; however, it noted that the results of the efficacy review for GliaTilin in the second half of the year will be a major variable affecting earnings. The firm maintained its “Outperform” rating but lowered the target price to 80,000 won.

On the 16th, Heo Hye-min, an analyst at KIWOOM Securities, stated, “Although second-quarter earnings are expected to fall slightly short of market expectations, overall solid results are anticipated due to the stable growth of key products, including Wegovy,” adding, “We believe the results of the efficacy review for GliaTilin in the second half of the year will be a key variable affecting earnings.”
KIWOOM Securities projected that CHONGKUNDANG’s second-quarter standalone revenue would reach 462.9 billion won, an 8% increase year-over-year and a 3% increase quarter-over-quarter. Operating profit is expected to be 19.3 billion won, a 13% decrease year-over-year and a 10% decrease quarter-over-quarter. These figures are slightly below the market consensus of 476.2 billion won in revenue and 20.1 billion won in operating profit.
Sales of “Wigobi,” a major new product, are expected to remain at a level similar to that of the first quarter. Analyst Heo explained, “Wigobi is expected to maintain sales in the second quarter at a level similar to that of the first quarter (48.8 billion won), and steady growth across product lines is anticipated for this quarter’s results.”
However, the cost ratio is projected to remain above 70% due to cost pressures resulting from sustained growth in product sales.
The impact of the drug price reform scheduled to take effect on August 1 was assessed as limited. Researcher Heo stated, “Although the company has not yet received certification as an innovative pharmaceutical company, the high proportion of newly introduced drugs suggests that the impact on short-term performance will likely be limited.” He added, “Rather than the impact of the drug price reform, the Ministry of Food and Drug Safety’s review of the efficacy of GliaTilin—used to improve cognitive function in conditions such as dementia—is expected in the second half of the year, and depending on the outcome, we cannot rule out the possibility of a downward revision to second-half earnings.”
In terms of research and development (R&D), short-term momentum was assessed as limited. CKD-510 (PKN605, an HDAC6 inhibitor), an atrial fibrillation treatment licensed to Novartis, recently entered Phase 2 clinical trials; however, since the trial is scheduled to conclude in September 2027, analysts believe it is unlikely that meaningful clinical data will be released this year.
On the other hand, investment in the biotech research complex is gaining momentum. Following the 94.9 billion won spent last October to purchase land for the Baegot District Bio-Complex Research Park in Siheung, CHONGKUNDANG announced in June of this year a follow-up facility investment of 392.5 billion won to build a research center and a demonstration center for biopharmaceutical R&D. The research complex is scheduled for completion in August 2028.
Researcher Heo assessed that while these investments are significant for strengthening R&D capabilities and securing new growth foundations in the medium to long term, it will take time for them to contribute to actual sales after completion; therefore, a gap in growth momentum is likely to persist in the short term.