This article was posted on the ChosunBiz MoneyMove (MM) site at 3:40 p.m. on Dec. 17, 2025.
Prestige Biologics, whose stock had been depressed by a large issuance of convertible bonds (CBs), chose to extend the maturities instead of repaying, prolonging concerns over an overhang (large potential sell-off).
Prestige Biologics has won a series of large contracts this year, but its share price has been falling day after day. Persistent concerns about potential sell-offs continued to weigh on the stock. Investors hoped Prestige Biologics would somehow repay the CBs maturing early next year, but the company has postponed that task for one year.
According to investment banking industry sources on the 17th, Prestige Biologics announced in a disclosure on the 16th that it would extend the maturity of the third-series CB of 45.5 billion won from March 2026 to March 2027, a one-year extension. The CB was issued in March 2023, at which time the maturity interest rate was 4.12% per year. With this maturity extension, the maturity interest rate was raised to 4.83% per year.
Prestige Biologics is a contract development and manufacturing organization (CDMO) that had mainly produced products for its parent company, Prestige Biopharma. Since 2023 it has built biologics manufacturing facilities and expanded its business. However, commercialization of Prestige Biopharma's biologic "Tuznew" was delayed, and there were no notable new orders for two years.
Recently, it has secured a string of large contracts from external clients beyond its parent company, raising expectations for improved performance. Beginning with a biologics contract manufacturing order worth about 3.9 billion won in the first quarter, it closed a 13.2 billion won deal in the second quarter. It then secured three additional contracts, including one worth 14.4 billion won, achieving its largest-ever contract performance. Total orders this year amount to 36.7 billion won.
But the stock itself has not been able to rally. The share price, which was in the 7,000-won range at the end of last year, remains in the low 3,000-won range. The approaching large CB maturities have raised overhang concerns, compounded by uncertainty over funding.
Prestige Biologics has repeatedly raised external funds amid prolonged weak performance. It received capital injections from its parent through rights offerings in 2022 and 2024, and in March 2023 issued CBs worth 45.5 billion won to Octava Fund Limited in Singapore.
The conversion price of the CB is 3,534 won. Converted into shares, that amounts to 12,874,929 shares. If the CBs are fully converted, that quantity could flood the market at once, equal to 21.07% of the currently issued shares. The conversion price can be lowered to a minimum of 2,747 won. As a result, potential investors have been reluctant to invest in Prestige Biologics.
Investors expected repayment at maturity this time, but the company's finances are tight. As of the third quarter this year, Prestige Biologics held only 4.7 billion won in cash-like assets. With increasing contract wins, short-term investment needs — such as process development and facility improvements — have actually grown.
Prestige Biologics said the CB maturity extension will strengthen the stability of its financial structure. However, since it is unlikely that Prestige Biologics' financial situation will improve dramatically within a year, overhang and worsening funding concerns are expected to surface again next year.