[Click eStock] JW JoongWai Pharmaceutical, Q2 Earnings Fall Short of Expectations

[Asia Economy Reporter Junho Hwang] Hana Securities lowered the target price due to JW Pharmaceutical's poor performance on the 11th.

JW Pharmaceutical's sales in the second quarter of this year were 163 billion KRW, a 12.4% increase compared to the previous year. Operating profit was 10.3 billion KRW, up 173.3%. Although operating profit increased significantly, it did not meet market expectations (14 billion KRW). While the Liparo (pitavastatin) family showed steady growth, the cost of sales ratio increased, resulting in an operating profit margin of 6.3%, down from 9.2% in the first quarter. Due to the sluggish operating profit, Hana Securities lowered JW Pharmaceutical's annual operating profit forecast to 59.5 billion KRW (previously 64.9 billion KRW).

Researcher Jaekyung Park of Hana Securities said, "Reflecting the revision of earnings estimates, we have lowered the target price to 32,000 KRW while maintaining a 'buy' rating," adding, "The current target price does not include the value of the R&D pipeline, but depending on future results, the pipeline value could provide additional upside."

JW Pharmaceutical's candidate compound JW1601, which was licensed to Denmark's dermatology specialist Leo Pharma in August 2018, is currently undergoing Phase 2b clinical trials for atopic dermatitis patients and Phase 2 trials for cholinergic urticaria patients at Leo Pharma. Mid-term results of the Phase 2b trial are expected by the end of the year.

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