[Click eStock] "SK Pharmteco, Increasing Potential to Enter Obesity Treatment CDMO"
Published 10 Oct.2024 08:49(KST)
DS Investment & Securities evaluated on the 10th that SK Pharmteco, a 100% subsidiary of SK, is highly likely to enter the contract development and manufacturing organization (CDMO) business for the recently spotlighted obesity treatment drugs. At the same time, it maintained its investment opinion on the parent company SK as 'Buy' and the target stock price at '220,000 KRW'.
According to recent media reports, Novo Nordisk, known for the obesity treatment drug 'Wegovy', is pursuing the acquisition of SK Pharmteco's North American Virginia plant. This plant was acquired by SK Pharmteco when it took over the US company AMPAC in 2018.
Researcher Suhyun Kim of DS Investment & Securities stated, "Novo Nordisk is focusing on securing production facilities, including acquiring Catalent in February this year, to respond to the surging demand for Wegovy," and added, "SK Pharmteco, which has been preparing glucagon-like peptide-1 (GLP-1) production capabilities to meet the demand for obesity treatment drugs, is highly likely to enter the CDMO business."
Researcher Kim also said, "With the passage of the 'Biosecurity Law' in the US House of Representatives, which restricts transactions with major Chinese biotech companies, new opportunities will open in the cell and gene therapy (CGT) CDMO business," and predicted, "Pilot production of oligonucleotides and antibody-drug conjugates (ADC) will begin next year, and full-scale commercial production will start from 2026, expanding the business."
He added, "SK Pharmteco secured production bases in Europe and the US by acquiring a 70% stake in the French CGT-specialized contract manufacturing organization (CMO) company Yposkesi in 2021 and becoming the second-largest shareholder of the US company CBM last year," and forecasted, "With the resumption of CGT CDMO orders and the passage of the Biosecurity Law, sales will also increase next year."
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