[Click eStock] "SBioMedics, Undervalued Compared to Overwhelming Potential"

Hanyang Securities analyzed on the 1st that S-Biomedics is undervalued compared to its overwhelming potential.

Oh Byung-yong, a researcher at Hanyang Securities, explained in a report on the same day, “Parkinson's disease is an incurable disease, so currently there are only symptom-relieving drugs and no treatment drugs,” and “the prevalence is rapidly increasing, and the global number of patients reaches about 10 million, making it a huge untapped market.”

S-Biomedics is developing a new drug called ‘TED-A9’ aimed at the fundamental treatment of Parkinson's. Parkinson's disease occurs due to the death of dopamine-secreting nerve cells in the midbrain. S-Biomedics' new drug is a treatment method that transplants dopamine-secreting nerve cells produced from embryonic stem cells into the patient's midbrain. Theoretically, this method aims for a complete cure of Parkinson's disease. Currently, the company has already completed dosing 12 patients in the Phase 1/2a clinical trial of ‘TED-A9’ and is awaiting the results.

Researcher Oh said, “Similar to S-Biomedics, there is a company developing Parkinson's treatments using nerve cells called Bluerock Therapeutics, a subsidiary of Bayer,” and added, “Bluerock was acquired by Bayer in 2019 for a whopping $1 billion (about 1.3 trillion KRW). At that time, Bayer purchased 59.2% of Bluerock's shares in exchange for a contract payment of $240 million (about 320 billion KRW) and milestone payments of $360 million (480 billion KRW).”

He said, “More importantly, at that time, Bluerock had not even started Phase 1 clinical trials for the Parkinson's cell therapy ‘Vemdaneprosel’,” and estimated, “Bluerock recently succeeded in Phase 1 clinical trials, so its current value is likely much higher.”

He added, “If S-Biomedics' ‘TED-A9’ shows results at a good level like Bluerock in the Phase 1/2a clinical trial, its value could skyrocket,” and said, “The company plans to disclose 12-month data from low-dose patient dosing in May.”

Furthermore, he said, “S-Biomedics possesses technology to produce nerve cells from embryonic stem cells and is conducting Phase 1/2a clinical trials not only for Parkinson's but also for spinal cord injury (such as limb paralysis caused by trauma) treatments,” and analyzed, “Despite its overwhelming potential, the company's market capitalization (130 billion KRW) is far below that of general stem cell therapy companies. The company's IPO price on May 4 last year was 18,000 KRW, but the current stock price is only 11,750 KRW. The undervaluation appeal is very prominent.”

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