[Edaily Reporter Hong Ju-yeon ] Hyundai pharm(004310)The company has been drawing market attention every time the Lee Jae-myung administration makes statements regarding pharmaceutical policy. Following a sharp rise in its stock price late last year when the administration directed a review of health insurance coverage for hair loss treatments, the company’s stock hit the daily price limit this time after President Lee mentioned the need for appropriate administration of the abortion pill “Mifjin.” With the President’s directive spurring discussions to resolve a legislative vacuum that has lingered for six years, the company’s interim report confirmed that first-half sales exceeded 100 billion won and the company returned to profitability. This has led to assessments that, beyond the policy-driven theme, structural improvements in performance are also becoming visible.

Stock Price Soars 60% in Three Days Following Remarks… Expectations Remain High Amid a Breathing Space

On the 27th, Hyundai pharm closed at 5,770 won, down 340 won (5.56%) from the previous trading day. This is interpreted as a consolidation following the sharp rally that began after discussions on Mifjin gained momentum. The stock price, which stood at 4,675 won on the 13th—the day before the President’s remarks—hit the daily price limit (6,070 won) on the 14th and continued its upward trend, reaching 7,600 won on the 16th. This represents a 62.6% surge in just three days. Despite subsequent consolidation, the stock price remains more than 23% higher than it was before the remarks. This is seen as reflecting investors’ expectations that the company will benefit if the introduction of Mifegyn is approved.

The source of this optimism was the 30th Cabinet Meeting held on the 14th. President Lee instructed officials to explore ways to allow the use of abortion medications even before the relevant laws are amended. Noting that legally setting a specific gestational age limit for permitted abortions is not the only solution, she proposed leaving the decision to the discretion of physicians. Her point was that the reality of women obtaining the medication through unclear channels—such as direct overseas purchases—should not be left outside the regulatory framework. Subsequently, inter-ministerial consultations began, led by the Office for Government Policy Coordination and involving the Ministry of Gender Equality and Family, the Ministry of Health and Welfare, and the Ministry of Food and Drug Safety.

Mifjin is the brand name for mifepristone, a drug that blocks the action of progesterone, the hormone necessary for maintaining pregnancy. Although widely used overseas, no product has yet been approved in South Korea. Hyundai pharm is reportedly the only company in South Korea that holds the licensing rights for Mifjimisso (the official name for Mifjin). Hyundai pharm signed a contract with the UK-based Linepharma International in 2021 and applied to the government for marketing authorization for the combination drug “Mifegymiso.” At the time, the application was voluntarily withdrawn due to issues with the submission of supplementary data; the company resubmitted applications in 2023 and 2024, and the third application is currently under review.

However, these discussions do not necessarily lead directly to prescribing the drug. On the 15th, Jeong Eun-kyung, Minister of Health and Welfare, stated, “If the drug is approved and introduced, we are preparing to establish safety standards, such as clinical practice guidelines, in collaboration with the medical community to ensure its safe use.” As key issues—including prescribing criteria, the scope of medical professionals’ liability, and emergency response systems following administration—remain unresolved, some observers argue that these matters should be considered separately from the actual implementation of the system or the outcome of the approval process.

First-Half Sales Exceed 100 Billion Won… Transition to ETC Model with DM Duo

Hyundai pharm is showing a clear trend of improved performance, separate from expectations regarding policy developments. According to the semi-annual report submitted to the Financial Supervisory Service, Hyundai pharm—which closes its fiscal year in November—recorded sales of 102 billion won in the first half (December 2025–May 2026), an 11.5% increase compared to the 91.5 billion won recorded in the same period last year. By segment, the pharmaceuticals division led growth with 85.7 billion won, up 11.4% year-over-year, accounting for 84% of total revenue. The food division grew 2.1% to 11.9 billion won, while other segments—including cosmetics and leasing—expanded 54.8% to 4.5 billion won. Last year’s annual revenue was 191.8 billion won, and the company is expected to reach the 200 billion won range this year.

Profitability improved at a faster rate than revenue growth. Operating profit for the first half of the year was 3.5 billion won, a 427.5% increase from 663 million won in the same period last year, and the operating profit margin rose from 0.7% to 3.4%. Net income stood at 1.6 billion won, marking a return to profitability from a net loss in the same period last year. While cost of sales rose 16.4% year-over-year to 61.1 billion won and selling and administrative expenses increased 3.6% to 30.0 billion won, a 20.8% reduction in ordinary R&D expenses—from 9.4 billion won to 7.5 billion won—contributed to the improvement in operating profit.

At the heart of this business transformation is the dementia combination drug “DM Duo.” Launched under the national health insurance program in March of last year, DM Duo is Korea’s first Alzheimer’s disease combination drug, combining 10 mg of donepezil and 20 mg of memantine—two drugs frequently prescribed together—into a single tablet. In its first year on the market, it recorded 2.3 billion won in prescription sales within the donepezil-memantine combination market (3.7 billion won), securing a market share of over 60%.

A Hyundai pharm official explained, “DM Duo was launched with the aim of enhancing medication convenience by combining the two active ingredients used to treat Alzheimer’s disease into a single combination drug, thereby reducing the burden of medication adherence for patients requiring long-term treatment and their caregivers,” adding, “It is a prime example of a patient-centered strategy that incorporates the inconveniences patients face and unmet needs into product development.”

Building on this success, Hyundai pharm has set out to establish a “CNS Total Care Platform” that encompasses the full spectrum of central nervous system (CNS) disorders, including depression and Parkinson’s disease. The company explained that it has accumulated expertise in the CNS treatment field by proactively developing and launching specialized treatment options—such as Tamirin Extended-Release Tablets, Multafin, and low-dose Hypazil formulations—tailored to patients’ symptoms, treatment stages, age, and medication-taking environments.

Focusing Capabilities Beyond CNS Products to Hair Loss and Metabolic Disorders

This is not the first time Hyundai pharm has been in the spotlight due to government statements on pharmaceutical policy. Last December, when the government directed a review of health insurance coverage for hair loss treatments, the company’s ownership of “Minoxil” was highlighted, leading to consecutive days of rising stock prices.

In addition to the topical minoxidil products “Minoxil Solution” and “Compound Minoxil Solution,” Hyundai pharm maintains a well-rounded portfolio of oral hair loss treatments, including “Minopecia” tablets containing finasteride and “Damodat” tablets and soft capsules containing dutasteride. As such, the company is considered a key player in discussions regarding national health insurance coverage for hair loss treatments.

In the metabolic disease sector, the company is currently conducting a domestic Phase 2b clinical trial for HDNO-1605 (HD-6277), a treatment for Type 2 diabetes based on the mechanism of action of pancreatic G protein-coupled receptor 40 (GPR40). As an oral treatment that regulates insulin secretion in the body to reduce the side effects of hypoglycemia, there is also speculation about the potential for future expansion of its indications, in line with the industry trend of extending diabetes treatments to obesity.

A Hyundai pharm official stated, “Our strategy is to move beyond a product-centric approach—not only for CNS products but also across various disease areas—and comprehensively consider patients’ medication treatment, adherence, and the care burden on their caregivers,” adding, “We will provide tangible therapeutic value to patients and further strengthen our patient-centered total care foundation.”