Lapass continued to post losses as its revenue growth in the first half of 2026 fell short of expectations. However, some analysts note that domestic sales in its ODM business are growing rapidly, and the pace of growth could expand in the second half.

▲ First-half setback: stagnant exports Stagnation in the export segment weighed on first-half performance. Overseas sales within the ODM business showed no clear growth, whereas relatively high growth rates were seen in the domestic market. As a result, whether performance recovers in the second half will likely depend on how sustained the expansion of domestic ODM sales proves to be.

▲ ODM to drive short-term results... own brands need time Expanding sales of the company's own-brand products is expected to take some time. As brand recognition and distribution network expansion may require a certain period before being fully reflected in earnings, the structure of ODM business driving short-term performance is likely to continue.

▲ PostBio emerging as a new growth pillar The growth of subsidiary PostBio is also notable. PostBio is expanding its business centered on molecular diagnostics for animals and has reportedly shown strong growth recently. For Lapass, this is significant in that a new growth axis is being formed through its subsidiary, beyond the existing cosmetics and microneedle businesses.

▲ Microneedle patch therapeutics: a mid-to-long-term variable The development of microneedle patch-type therapeutics is also cited as a mid-to-long-term growth variable. Lapass is developing treatments utilizing microneedle technology and has signed a joint development agreement with a Japanese company. Its impact on corporate value may vary depending on future progress in development stages and the potential for commercialization.

▲ Cash assets and convertible bonds also need monitoring On the financial side, cash assets and the status of convertible bonds also warrant attention. With losses continuing, the burden of R&D and operating funds could grow, making cash holdings and the possibility of additional fundraising important. In particular, convertible bonds could lead to an increase in share count and equity dilution depending on future conversion, making them a factor investors should verify.

▲ Key checkpoints for the second half Ultimately, Lapass's second-half trajectory will likely hinge on whether domestic ODM growth translates into actual earnings improvement, whether PostBio's growth momentum continues, and whether microneedle therapeutic development leads to concrete results. The pace of sales expansion for own-brand products and financial structure management are also areas to watch.

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