Kyobo Securities announced on November 5 that it is maintaining its target price for Daewoong Pharmaceutical at 200,000 won, citing strong exports of Nabota that exceeded third-quarter performance expectations.
In a report, analyst Jeong Hee-ryeong noted that Nabota exports reached 106.8 billion won in the third quarter, marking a 127.9% increase compared to the same period last year. Jeong also mentioned that the new Nabota plant is expected to obtain cGMP certification next year, which could provide a foundation for revenue growth once the certification is completed.
Daewoong Pharmaceutical reported consolidated sales of 459.4 billion won for the third quarter, an 11.6% increase year-on-year, while operating profit rose by 25.4% to 71.3 billion won. However, sales in the prescription drug (ETC) segment decreased by 3.1% to 218.4 billion won.
Jeong attributed the temporary decline in sales to the end of the co-promotion of Pexuclu and the transition to direct sales. She stated that the company plans to complete the transition to direct sales for all products by the end of the year. Previously, Daewoong Pharmaceutical was only responsible for supplying Pexuclu, but with the shift to direct sales, the final supply price will be recognized as revenue, which is seen as a positive development.
As a result, the investment recommendation remains a 'buy' with a target price of 200,000 won. Jeong highlighted that Daewoong maintains a strong market share in increasingly competitive sectors such as P-CAB, digital healthcare, and toxins, while also seeking new growth avenues through various research and development investments, including the GLP-1 microneedle patch and the idiopathic pulmonary fibrosis treatment, versiporocin.
However, due to the restructuring of the distribution network and a temporary revenue gap from concentrated Nabota shipments to the U.S., the annual operating profit guidance has been lowered to 200 billion won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.