[Click eStock] "Newgislab Pharma, Focus on Value Change of Immuno-Oncology Drug KAT"

[Asia Economy Reporter Hyunseok Yoo] Sangsangin Securities analyzed on the 14th that attention should be paid to the value change of the metabolic anticancer drug KAT of Newgelab Pharma. No investment opinion or target price was presented.

Newgelab Pharma is a bio company focused on the development of the metabolic anticancer drug KAT. It has been engaged in the CCTV camera business since 2004. It started the 5G mobile distribution business in 2019. Related sales in 2020 amounted to 54.4 billion KRW.

Sangsangin Securities expected Newgelab Pharma's existing mobile and camera business to act more as a cash cow with declining sales rather than growth. However, it emphasized that the growth vision lies in bio new drug development. Researcher Tae-gi Ha of Sangsangin Securities explained, "The value of Newgelab depends on how much value the developing metabolic anticancer drug KAT can create," adding, "Currently, there is one proprietary new drug pipeline and one in-licensed new drug pipeline."

He emphasized, "First, the FDA clinical phase 1/2a trial of the metabolic anticancer drug (KAT-101) is becoming visible," and "It is noteworthy whether future results can be produced in the metabolic anticancer drug area."

He explained, "We have introduced the targeted anticancer drug Taletrectinib domestically," adding, "Taletrectinib was developed by Japan's Daiichi Sankyo, and the US bio company AnHeart Therapeutics owns the global sales rights." He continued, "Phase 1 clinical trials have been completed in the US and Japan, and in June 2021, a domestic phase 2 clinical trial was applied for targeting non-small cell lung cancer patients with ROS1 gene mutations who took Xalkori and those resistant to Xalkori by licensing in Taletrectinib."

Researcher Ha explained that Newgelab's stock price can be expected from new drug development rather than existing businesses. He emphasized, "The value change of the metabolic anticancer drug KAT will act as an important momentum for the stock price," and "As a domestic leading listed bio company conducting global clinical trials in the metabolic anticancer drug sector and entering global clinical phase 1/2a trials in the third quarter, this will positively affect the stock price in terms of scarcity."

He added, "The second half of the year is expected to be a period when Newgelab begins to attract attention from investors," and "Whether the value is fully reflected will likely be decided in 2022, and if interim data from the phase 1/2a clinical trial is announced around mid-2022, the outline of the pipeline's value may emerge." He further emphasized, "Especially, the expected licensing-out (L/O) in the Greater China region could influence the value of the anticancer drug KAT, so stock price volatility may fully occur in 2022."

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