[Click eStock] SK Biopharm, If Things Go As Expected...

SK Biopharm's New Drug Development Research Scene

[Asia Economy Reporter Hwang Junho] Hana Financial Investment maintained its target price for SK Biopharm at 120,000 KRW on the 20th, expecting the normalization of operations following the reopening.

Hana Financial Investment forecasts that SK Biopharm's sales in the first quarter of this year will be 46 billion KRW, a 67.2% decrease compared to the previous year, and expects an operating loss of 28 billion KRW, continuing the deficit. However, this is in line with market expectations. SK Biopharm's sales and operating loss for this year are estimated at 233.2 billion KRW and -84.5 billion KRW, respectively.

The key to this year's performance is whether Xcopri's operations will normalize following the reopening. Hana Financial Investment projected that Xcopri's U.S. sales this year will grow by 106.7% to 161.7 billion KRW compared to the previous year. With the expiration of Vimpat's patent and the lifting of COVID-19 related restrictions in the U.S., face-to-face sales activities have become active from the second quarter, and with the normalization of operations, the slope of prescription increases may steepen, making it possible to revise performance estimates upward depending on future TRx trends, according to Hana Financial Investment. However, a decrease in service revenue composed of technology transfer fees and milestones is expected to lead to a return to deficit.

Jae-kyung Park, a researcher at Hana Financial Investment, said, "The future points to watch are additional technology transfers for remaining regions of Xcopri (such as South America) and open innovation," adding, "If SK Biopharm achieves efficiency in its U.S. sales organization through open innovation such as introducing late-stage candidate substances and licensing agreements for commercial-stage drugs, a faster turnaround to profitability than currently estimated for the second half of 2023 will be possible."

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