Mother's Pharm set a corporate valuation of up to 215.2 billion won during its initial public offering (IPO) process. This valuation corresponds to a price-to-earnings ratio (PER) of 19.2x based on last year's performance. Notably, the company expects a substantial increase in profit scale this year, driven by expanded supply of key pharmaceuticals and improved cost ratios.
Mother's Pharm said Wednesday that it plans to list on the KOSDAQ market, increase investment in pharmaceutical production infrastructure, and strengthen its research and development capabilities.
Since its establishment in 2011, Mothers Pharma has grown through the production of prescription drugs (ETC) and over-the-counter drugs (OTC), as well as contract manufacturing organizations (CMO) services.
Its main products include treatments for hyperlipidemia and diabetes. The company has expanded its business scope beyond standard generics to include first generics, combination drugs, and improved new drugs.
Mothers Pharma has continued to demonstrate its business competitiveness through sustained recent performance growth. Annual revenue increased from 157.7 billion won in 2023 to 192.7 billion won in 2024, and further to 228.8 billion won in 2025. Operating profit rose from 6.2 billion won in 2023 to 8.7 billion won in 2024, reaching 13.7 billion won in 2025.
Cumulative revenue for the first three quarters of this year was 196 billion won, and operating profit was 19.7 billion won, representing increases of 13.5% and 53.4%, respectively, compared to the same period last year.
The operating profit margin stood at 10.1%, up approximately 2.6 percentage points from the same period last year.
Mothers Pharma explained that its revenue growth and improved profitability this year were primarily driven by a rising share of its own products, which have relatively high profit margins, along with improved cost ratios for key items.
In particular, hyperlipidemia treatment "Rosuamjet Tablets" and diabetes treatment "Teneglip Tablets," each accounting for more than 10% of total revenue as single items, drove performance growth.
Cumulative revenue for the first three quarters of this year was 22.2 billion won for Rosuamjet Tablets and 24.3 billion won for Teneglip Tablets, representing increases of 14.6% and 24.6%, respectively, compared to the same period last year.
Mothers Pharma plans to primarily use its IPO proceeds for facility investments, such as building a production line for content-determining systems and introducing new equipment.
The company's strategy is to build a new second factory on idle land within its first factory in Iksan to diversify formulations and differentiate products. It also plans to expand its contract manufacturing business.
Mothers Pharma will conduct demand forecasting for institutional investors from the 27th of this month to the 3rd of next month. Following this, it will hold a general investor subscription period on the 8th and 9th of next month.
The desired offering price range is 11,000 won to 14,500 won per share. Based on this band, the offering size ranges from 26.4 billion to 34.8 billion won. The expected corporate valuation ranges from 163.2 billion to 215.2 billion won.
Mothers Pharma's corporate valuation at the upper end of the band corresponds to a PER of 19.2x based on last year's performance, leading some to assess it as somewhat aggressive for a generic-focused pharmaceutical company. However, analysts view the steep recent performance growth and the expansion into improved new drugs and innovative new drugs positively.
Mothers Pharma holds new drug pipelines, including a treatment for dry age-related macular degeneration (MTS-DA) and a non-narcotic osteoarthritis pain treatment (MTS-CP). It is also expanding its research scope to include oral peptides and antibody-based biopharmaceuticals.
A company official said, "This year, we made significant efforts to reduce costs, including directly finding new manufacturers in the raw material sector."
The official added, "Profit margins improved due to factors such as expanded supply of our own products with favorable cost ratios." Furthermore, the official said, "Through the IPO, we will strengthen future growth drivers by constructing a new factory in Iksan and focusing on new drug development."
in THEBIO
