Hana Financial announced on July 20 that it has raised its target price for SK Biopharm from 100,000 won to 110,000 won, citing an increase in prescriptions for the epilepsy treatment Xcopri. The investment recommendation remains a 'buy.'
Kim Seon-a, a researcher at Hana Financial, stated, "Despite the launch of a generic version of the competing product Briviact in February and March of this year, Xcopri's prescriptions in the U.S. increased by 8.5% in the second quarter compared to the previous quarter. This is a significant increase considering the 2.8% growth in the previous quarter."
She added, "The anticipated impact of the Briviact generic has not materialized, and if undisclosed royalties or other one-time revenues exceed expectations, we can anticipate even higher sales due to favorable exchange rates."
Hana Financial forecasts SK Biopharm's second-quarter revenue to reach 238.5 billion won, a 35.3% increase year-on-year, while operating profit is expected to rise by 43.0% to 88.5 billion won. These figures are 2.0% and 4.7% above market expectations, respectively.
Looking ahead, the growth of Xcopri is expected to continue in the second half of the year. Kim noted, "Based on the second-quarter prescription data, our revenue estimate for Xcopri this year is $584 million, which is close to the upper end of the company's guidance. We also anticipate milestone payments and royalties from the approval in Japan."
Increased investment in research and development is also seen as a positive factor. Kim explained, "Starting this year, SK Biopharm is actively pursuing the development of more than five new drugs and expanding its R&D investments. The company is strengthening its growth drivers through the development of next-generation modalities such as radiopharmaceuticals (RPT) and targeted protein degraders (TPD), as well as collaboration with AI drug development firm Insilico Medicine."
Furthermore, she added, "If the acquisition of follow-up new drugs and the Hong Kong listing of the joint venture Ignis Therapeutics become visible, a reevaluation of the stock price is also possible."
* This article has been translated by AI.
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