HEM PharmaHEM파마

HEM Pharma's shares have fallen sharply over the past year and the company is still loss-making, with revenue shrinking in 2025.

HEM Pharma is a Korean microbiome healthcare company selling personalised health services, running a drug discovery platform for partners, and selling its LABOREVE skincare line. On trailing twelve-month figures to H1 2026 it recorded ₩16.1B of revenue against an operating loss of ₩17.0B, and its cash of ₩7.6B sits below borrowings of ₩10.9B. The share price of ₩28,250 is about 71% below its 52-week high of ₩97,500.

What stands out

• Revenue fell 13.9% in 2025 to ₩13.0B, after a large jump of 181.9% in 2024.
• Operating margin was -105.4% on a trailing basis and net margin was -129.3%, so losses are large relative to sales.
• Liabilities are 250.1% of equity and free cash flow over the trailing period was -₩15.7B, which points to funding pressure.
• The filings show a convertible bond issue decision in August 2026 and two amended major sales or supply contracts in September 2026, though the data does not give their details.
• Valuation shows a price-to-book of 14.1 and price-to-sales of 12.6, with no earnings-based multiples because the company is loss-making; the company pays no dividend.

What to watch

• The full-year 2026 results and any further filings on the convertible bond and the amended supply contracts, which the data does not detail.
• Whether the overseas expansion into Hong Kong, Vietnam and Japan adds revenue, given the continued losses.
• Ongoing cash burn against ₩7.6B of cash and ₩10.9B of borrowings, which could affect future funding needs.