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DEEP RESEARCH · ST PHARM

ST Pharm Deep Dive: Oligo CDMO and xRNA Platform Leverage

Connecting 3Q25 earnings surprise, the second oligo plant, LPOS, SmartCap, and Biosecure Act upside

Date: 2025-12-01 · Company deep dive · Naver Blog

Investment decisions are your responsibility. This material is research and is not a recommendation to buy or sell.

0. Bottom line first

ST Pharm appears to be moving from expectation to earnings proof. 3Q25 revenue of KRW 81.9 billion, operating profit of KRW 14.7 billion, and 141.6% operating profit growth show both mix improvement and operating leverage in oligo CDMO.

Official fact: 3Q25 consolidated revenue was KRW 81.9 billion and operating profit was KRW 14.7 billion. Revenue rose 32.7% YoY, operating profit rose 141.6%, and GPM improved from 36.4% to 45.2%.

Interpretation: As low-margin business shrinks and high-margin oligo CDMO drives results, the structural improvement in earnings power matters more than a single strong quarter.

ST Pharm Growth EngineCapacity, technology, geopolitics, pipeline
Oligo CDMOSecond oligo plant
LPOSLiquid-phase synthesis
SmartCapmRNA capping
PipelineSTP0404, STP1002
The key 2026 question is whether order growth becomes utilization and margin.

1. Industry transition

Biopharma is moving from small molecules and antibodies toward nucleic acid therapeutics. Oligonucleotide drugs are expanding from rare disease into chronic indications such as hyperlipidemia and cardiovascular disease, increasing API demand.

ST Pharm started as an API CMO, but it is now being reassessed as a CDMO and technology platform company in the xRNA ecosystem, including oligo and mRNA.

2. 3Q25 earnings and margin change

Account3Q243Q25YoYRead-through
RevenueKRW 61.7bnKRW 81.9bn+32.7%Driven by oligo sales
Gross profitKRW 22.5bnKRW 37.0bn+64.6%Better product mix
GPM36.4%45.2%+8.8%pHigh-margin mix expansion
Operating profitLow baseKRW 14.7bn+141.6%Operating leverage begins

Interpretation: Demand, capacity, and price mix aligned in 3Q25. The more important issue is whether operating margin can settle around the 20% level.

3. Second oligo plant and technology moat

The second oligo plant is more than capacity expansion. It is proof of large-scale manufacturing capability in the global oligo CDMO market. LPOS is presented as a way to overcome some limits of traditional SPOS and improve productivity, cost, and scalability.

SPOS

Solid-phase synthesis

The existing standard, but potentially less efficient for large-scale production.

LPOS

Liquid-phase synthesis

A next-generation synthesis route positioned around scalability and cost advantage.

SmartCap

mRNA capping

A key mRNA manufacturing component that adds platform value through patents and partnerships.

4. Biosecure Act and orders

Official fact: The post states that in October 2025, the US Senate included the Biosecure Act in an FY2026 NDAA amendment. The act is centered on restrictions involving Chinese biotech companies such as WuXi AppTec, WuXi Biologics, and BGI.

ST Pharm is discussed as a potential alternative supplier in oligonucleotides. The post highlights the Gilead Biktarvy API supply contract, 43 new-drug CDMO projects as of the end of 3Q25, and more than 40% growth versus 30 projects at the end of 2024.

5. Internal pipeline

The company also runs a Virtual R&D strategy funded by CDMO cash flow. STP0404 is an allosteric integrase inhibitor, with 2a interim data presented at IDWeek in October 2025, cohort 3 ongoing, and CSR expected in 1H26. STP1002 is an oral colorectal cancer therapy based on tankyrase inhibition, with Phase 1 data presented at ESMO 2024 and combination strategies under review.

6. 2026 watch list

  • Utilization ramp and revenue recognition from new orders at the second oligo plant
  • Whether 2025 expected revenue of about KRW 343.1bn and operating profit of about KRW 59.6bn are achieved
  • Whether 2026 revenue exceeds KRW 400bn and operating margin settles near 20%
  • Whether a 26-27x EV/EBITDA premium can hold
  • STP0404 licensing potential and wider SmartCap/LPOS adoption

Sources

Naver original