SK Bioscience Reflects 2022 Vaccine Performance... Target Price Set at 330,000 KRW

[Asia Economy Reporter Park Soyeon] SK Securities maintained a target price of 330,000 KRW and a buy rating for SK Bioscience, stating that "only positive events remain in 2022."

According to FN Guide on the 2nd, SK Securities recently forecasted in a report that SK Bioscience will record approximately 524.5 billion KRW in sales and 269.5 billion KRW in operating profit for the fourth quarter of 2021. This is expected to increase by 682.7% and 2369%, respectively, compared to the same period last year.

SK Bioscience planned to produce 80 batches of vaccines last year, and as of the third quarter, 42 batches had been produced cumulatively. SK Securities analyzed that the remaining 38 batches will be produced in the fourth quarter, resulting in a record quarterly performance. The volume of Novavax license-in products was also partially pre-purchased by the government and will be reflected in the fourth quarter results.

SK Bioscience announced through a disclosure that it has extended its contract with Novavax. In addition to extending the existing CMO contract, they signed an additional CMO contract on the existing license-in agreement, allowing them to receive part of Novavax's net sales as incentives in the future. They also signed contracts for sales rights in Thailand and Vietnam. The Novavax vaccine received approval from the European Union (EU) and the World Health Organization (WHO) last year and is scheduled to be shipped early this year.

SK Securities stated that SK Bioscience's self-developed vaccine GBP510 has entered efficacy evaluation for domestic Phase 3 clinical trials and is currently analyzing neutralizing antibodies. If the approval evaluation proceeds smoothly, the Ministry of Food and Drug Safety's product approval is expected in the first half of 2022. Subsequently, they plan to focus on obtaining WHO prequalification certification and emergency use authorizations from various overseas countries to export to countries that have not yet been vaccinated against COVID-19. SK Securities said, "Sales of the self-developed vaccine are expected to be reflected in the 2022 performance."

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