[Click eStock] "Yuhan Yanghang, Expected 100 Billion KRW Technology Fee Income... Opportunity for Bottom Buying"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment evaluated that Yuhan Corporation will have a different class of year due to the expansion of the technology transfer contract scale on the 9th. It is analyzed as a bottom-buying opportunity due to the expected effect of large-scale milestone (stepwise technology fee) performance exceeding 100 billion KRW.

Sun Minjung, a researcher at Hana Financial Investment, stated, "Yuhan Corporation is expected to receive a large-scale milestone with the start of Phase 2 clinical trials of the combination therapy of Lazertinib and Janssen's bispecific antibody in the first half of this year," and added, "In the second half, milestones can be expected from the clinical entry of YH25724, which was licensed to Boehringer Ingelheim, and the lead compound for NASH treatment derived by Gilead."

According to Hana Financial Investment, the milestone scale from the three large-scale technology transfers Yuhan Corporation has signed is approximately $1.205 billion from Janssen, $770 million from Gilead, and $830 million from Boehringer Ingelheim. The technology transfer contract scale generally consists of upfront payments and milestones. The upfront payment usually accounts for 5-10%, with milestones accounting for more than 90% of the total.

In particular, the previously recognized upfront payment of 40 billion KRW and the milestone scale expected to arise from R&D momentum is 60 billion KRW, estimating that the technology fee revenue in 2020 will reach about 100 billion KRW.

Researcher Sun emphasized, "If royalties are expected after the launch, the technology fees Yuhan Corporation can receive annually are estimated to reach between 200 billion and 300 billion KRW," and added, "It is transforming from an ordinary domestic pharmaceutical company that was satisfied with quarterly operating profits in the 20 billion KRW range in the past to a pharmaceutical company of a different class."

This content was produced with the assistance of AI translation services.