Kangstem Biotech, founded in 2010, develops stem-cell therapeutics and holds proprietary technology for isolating and mass-culturing cord-blood stem cells at high purity; today its revenue comes not from new drugs but from stem-cell culture-medium cosmetic ingredients and finished goods (culture medium, MO, BIO-3, GD11 and others) and cell contract development and manufacturing (CDMO), while its core drug candidates target atopic dermatitis (Furestem-AD), rheumatoid arthritis and osteoarthritis. Through 2026 it secured R&D funds via share issuance and reorganized its board with an outside-director appointment and stock options, the May Q1 report confirmed continuing losses, and a June 2 IR reviewed the business, while in the clinic the atopy program was re-launched with a repeat-dosing regimen after its prior Phase 3 failed to show sufficient efficacy. What stands out lately is the strength of proprietary technology, a three-track pipeline and near-term funding stamina with a current ratio of 525% and a debt ratio of 118.7%; against that, revenue is shrinking and losses continue in the ₩10 billion-plus range each year, and with the core atopy trial having hit a setback, the basis for a P/B of 3.02x rests on the pipeline rather than results — a textbook development-stage biotech.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 53.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 15.7% lower than a year earlier.
- ROE is -15.3% (controlling-interest basis). It is below the sector average.
- Operating margin is -494.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Sejong 19.79% (corporate)
Controlling bloc incl. related parties 19.79%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Kangstem Biotech, established in 2010, is a stem-cell therapeutics developer with proprietary technology for isolating cord-blood stem cells at high purity and culturing them at scale.
- Its actual revenue today comes not from new drugs but from selling cosmetic ingredients and finished goods that use stem-cell culture medium (culture medium, MO, BIO-3, GD11 and others) and from cell contract development and manufacturing (CDMO).
- In other words, the structure splits into 'R&D on stem-cell drugs, and current cash from cosmetic ingredients and culture medium.' Its core drug candidates are atopic dermatitis (Furestem-AD), rheumatoid arthritis (Furestem-RA) and osteoarthritis (OSCA / Furestem-OA Kit).
- With the drugs still pre-market, a large share of company value is tied to the expectation that trials advance and lead to products.
- The latest close is ₩2,365 and the market cap is ₩222.4 billion.
- The price sits below its 20-day line (₩2,455) and below its 60-day line (₩3,148).
- Trading beneath both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 43.2, a neutral level.
- The price is down 4.2% over one month and 23.9% over three months, and stands 48.8% below its 52-week high.
- Relative strength versus the KOSDAQ is 84 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 15% of all stocks by strength.
- Over the past three months it has outpaced the index by 0.5%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- With new-drug revenue not yet meaningful, this is a stage of continuing losses.
- On a 2025 consolidated basis, revenue was ₩3.57 billion, the operating loss -₩17.67 billion and the net loss -₩10.48 billion, with an operating margin of -494.6%.
- With profit in the red, the P/E (how many times one year's profit the share price is) cannot be calculated, and EPS is -₩111.4.
- For a clinical-stage biotech like this, it is more appropriate to look at the asset-based P/B (how many times equity the price is) and cash stamina than to judge cheap or expensive on profit or revenue multiples such as P/E or P/S (how many times one year's revenue).
- The P/B is 3.24x.
- Given that comparable regenerative-medicine names carry double-digit P/Bs, it is hard to call this P/B itself an excessive burden.
- On financial stamina, a current ratio (assets convertible to cash within a year versus debt due within a year) of 525% and a debt ratio (debt relative to equity) of 118.7% leave room in near-term liquidity, which ties directly to the fuel for continuing trials.
- The top line is in a declining trend.
- Revenue over the past three years fell ₩12.7 billion → ₩7.7 billion → ₩3.57 billion, down 53.9% in 2025 versus a year earlier, and cumulative Q1 2026 was ₩805 million, down 15.7% year over year.
- Operating and net losses have run around the ₩10 billion range each year.
- So this company's growth is better read as 'how far the clinical stage has advanced' than as 'how much revenue has grown.' With no grounds visible for this year's profit to turn positive either, a forward (this-year-looking estimate) profit multiple simply cannot be constructed — this reflects the fact of a loss-making development stage rather than any haircutting of figures.
- Accordingly, the growth watchpoints are not the income statement but whether the three pipelines — atopy, rheumatoid arthritis and osteoarthritis — advance to their next stages, and the cash-burn pace until then.
- Through 2026 the filings center on funding, governance and communication (IR) rather than direct new-drug revenue.
- In March the company secured R&D funds through a board-approved share issuance and reorganized its board and staffing with an outside-director appointment and the grant of stock options (share-based compensation).
- In April a large-holding report was filed, indicating a change in a major shareholder's stake, and in May the Q1 report confirmed continuing quarterly losses.
- On June 2 it held an IR to explain its business and R&D status directly.
- On the clinical side, the atopy program (Furestem-AD) is being re-launched with a repeat-dosing regimen after its prior Phase 3 failed to show sufficient efficacy, rheumatoid arthritis is at Phase 2, and osteoarthritis (OSCA) is at the stage of setting the next step after wrapping up its Phase 2a report.
- The strengths are clear.
- It holds proprietary stem-cell isolation and mass-culture technology and a pipeline spread across three tracks — atopy, rheumatoid arthritis and osteoarthritis — and with a current ratio of 525% and a debt ratio of 118.7% it has near-term funding stamina to carry trials further.
- The price is also around half its 52-week high with the RSI in depressed territory, a spot where expectations have cooled.
- At the same time the cautions are just as clear: revenue is shrinking and losses continue in the ₩10 billion range each year, the once-core atopy trial has hit a setback, and being pre-revenue for new drugs, a large share of value rests on the expectation of future clinical success.
- In short, a P/B of 3.02x is not a spot that looks expensive within the regenerative-medicine peer set, but the basis for that value is the pipeline rather than results.
- Expectations revive if trials advance to their next stages and fundraising goes smoothly, and it weakens if trial delays, dilution from capital raises and cash burn overlap — a textbook development-stage biotech.
🔎 Valuation vs peers Inconclusive
Compared against human-tissue and cell-based regenerative-medicine companies at the clinical stage without new-drug revenue, on the shared premise that they are valued on pipeline worth rather than the top line.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| L&C Bio | 0.00x | 9.50x | -69.71% |
With profit negative, comparison on a P/E is impossible, and against fellow regenerative-medicine company L&C Bio (P/B 10.91x), Kangstem Biotech's P/B of 3.45x is relatively low. That said, as the P/S of 66x shows, market cap versus current revenue is very high, so the price rests not on 'today's business' but on 'the expectation of future clinical success.' For a loss-making company, trailing metrics that reflect last year's results carry little meaning, and this-year forward profit is estimated negative too, making multiple derivation difficult. Since value therefore hinges on clinical progress, it is hard to assert cheap or expensive, so the verdict is inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩2,365 and the market capitalization is ₩222.4 billion. The price sits below its 20-day moving average (₩2,455) and below its 60-day moving average (₩3,148). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.2, a neutral level. The one-month change is -4.2%, the three-month change is -23.9%, and the position relative to the 52-week high is -48.8%. Relative strength versus the KOSDAQ is 84 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 85% of all stocks. Over the past three months it outpaced the index by 0.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +0.50% / 6M +30.92% / 12M +46.23%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 3.24x is above the sector median (1.37x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -15.3%, below the sector average (3.0%). The operating margin is -494.6%. The debt ratio is 118.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $8.4M | $5.1M | $2.4M | -53.88% ↓ slower |
| Operating profit | -$15.1M | -$9.8M | -$11.7M | — |
| Net profit | -$14.5M | -$5.1M | -$6.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $8.2M | $10.8M | $8.4M | $5.1M | $2.4M |
| Operating profit | -$15.1M | -$13.6M | -$15.1M | -$9.8M | -$11.7M |
| Net profit | -$14.1M | -$13.4M | -$14.5M | -$5.1M | -$6.9M |
| Revenue CAGR | 4-yr avg -26.74% | ||||
Revenue fell 53.9% year over year (2023 ₩12.7 billion → 2024 ₩7.7 billion → 2025 ₩3.6 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -26.7%. The two-year revenue CAGR is -47.0%. In the most recent quarter (Q1 2026), revenue was 15.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 53.9% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-02IRHeld an IR to explain its business and R&D status directlyNear term: a communication event that shapes the market's understanding of pipeline progress and funding plans. Source
- 2026-05-14EarningsQ1 2026 report filed — cumulative revenue ₩805 million (-15.7% year over year), operating loss -₩4.57 billion, net loss -₩4.56 billionA near-term burden that confirms no top-line recovery and continuing quarterly losses. Source
- 2026-04-03FilingFiling of a large-holding report (general) — reporting a change in a major shareholder's stakeA change on the governance and supply-demand side, affecting future fundraising and the voting-rights landscape. Source
- 2026-03-31FilingFiling related to an outside-director appointment and stock-option (share-based compensation) grant — reorganizing the board and staffingMedium term: aimed at stabilizing management and R&D organization and attracting talent. Source
- 2026-03-12FilingShare issuance by board resolution — capital raising to secure R&D fundsNear term: potential dilution from new-share issuance; medium term: securing cash to sustain trials. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-31Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.