ST Pharm lands European contract, order backlog tops W530b for first time

ST Pharm has secured a new order from a European pharmaceutical company worth more than 10 billion won, pushing its cumulative order backlog above 500 billion won for the first time. The win shows that ST Pharm has successfully expanded beyond its core oligonucleotide (nucleic acid therapy) business into small-molecule active pharmaceutical ingredient (API) supply, demonstrating portfolio diversification in the global market.

ST Pharm said Wednesday it signed a supply contract with a Europe-based pharmaceutical company valued at $7.99 million for a small-molecule new-drug API. The order covers the first delivery tranche for 2027, with a deadline of Oct. 22 next year. Industry observers expect sales from the product alone to exceed 30 billion won this year, with further follow-on orders anticipated.

With the latest contract, ST Pharm's total order backlog reached $353.86 million, or approximately 530.8 billion won, surpassing the 500 billion won mark for the first time. That represents a 58.7% surge in just six months from the year-end 2025 backlog of $223 million. The milestone follows an 82.5 billion won contract with a US biotech earlier this year and a record 89.7 billion won oligonucleotide supply deal with a global pharmaceutical company in March, and now extends the company's winning streak into the small-molecule API segment.

Industry analysts say the latest order further solidifies ST Pharm's medium- to long-term growth momentum. API supply contracts typically translate into revenue over multiple years, so a backlog of 530 billion won provides a reliable earnings-visibility buffer going forward.

A persistently high exchange rate also stands to boost ST Pharm's profitability. A substantial portion of the company's sales comes from dollar-denominated export contracts, so the margin-enhancing effect of a stronger dollar is expected to show up in second-half earnings.

ST Pharm holds the world's third-largest position in oligonucleotide contract development and manufacturing (CDMO) services and commands strong production capacity anchored by its second oligonucleotide building, which came online last year. Building on that foundation, the company is actively expanding into an "integrated RNA CDMO" platform — leveraging its proprietary 5' capping and lipid nanoparticle (LNP) formulation technologies to cover mRNA and CRISPR gene-editing therapies. The US Biosecure Act is also driving new inquiries and contract conversions from projects previously placed with Chinese manufacturers, further strengthening ST Pharm's grip on the global market.

Securities analysts have taken note of ST Pharm's market position and earnings trajectory. Kim Seon-a, an analyst at Hana Securities, said the growth of the company's target market is clear, pointing to Ionis — one of ST Pharm's key clients — recently raising its annual revenue guidance from $2 billion to $3 billion. "Commercialization projects make a significant contribution to annual margin growth through stable revenue generation," Kim added.

As supply of high-margin commercial-product APIs increases, ST Pharm's consolidated second-quarter sales this year are forecast to reach 103.4 billion won — up 51.5% year-on-year — while operating profit is expected to climb 60.8% to 20.8 billion won, well above market consensus.