[Click eStock] With Affiliate Listings and Kanab Series Success... Boryung Pharmaceutical Shines Again This Year

Last Year's 'Earnings Surprise' Throughout the Year... Sales Expected to Grow Over 10% This Year as Well

[Asia Economy Reporter Minwoo Lee] Boryung Pharmaceutical, which posted earnings surprises every quarter last year, is expected to achieve steady growth this year as well. It is anticipated that favorable factors such as the listing of its affiliates and the continued popularity of the Kanab series will persist.

On the 17th, Hanwha Investment & Securities estimated that Boryung Pharmaceutical's sales last year reached 121.7 billion KRW, with an operating profit of 6.5 billion KRW. This represents a 16.9% increase in sales and a 33.9% increase in operating profit compared to the same period the previous year. The analysis indicates consistent growth throughout the year.

This growth is expected to be driven by the ETC and contract manufacturing divisions. Sales of the Kanab family (Kanab, Kanab Plus, Dukab) in the ETC segment reached 17.4 billion KRW, up 17.7% year-on-year. Additionally, imported drugs such as the GLP-1 class diabetes treatment Trulicity, and anticancer drugs Gemzar and Xeloda also showed strong growth. The highly profitable contract manufacturing business is also projected to steadily increase. Accordingly, sales for this year are forecasted to rise 10.1% from last year to 569.1 billion KRW. However, operating profit is expected to decrease by 5.2% to 37.2 billion KRW due to the inclusion of approximately 10 billion KRW in annual depreciation expenses for the budget factory.

The listing of affiliate Boryung Vigencell is also a positive factor. It aims to be listed on KOSDAQ this year. Vigencell, a developer of cytotoxic T lymphocyte (CTL) therapies, is currently conducting Phase 2 clinical trials for NK/T-cell lymphoma and Phase 1 clinical trials for acute myeloid leukemia. Jaehun Shin, a researcher at Hanwha Investment & Securities, analyzed, "The progress of Vigencell's clinical trials and the increase in equity value due to its initial public offering (IPO) also make it a valuable investment point for the company."

Hanwha Investment & Securities gave Boryung Pharmaceutical a 'Buy' rating with a target price of 20,000 KRW. The closing price on the previous day was 14,700 KRW.

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