[Special Stock] Oscotec, Most Undervalued Compared to New Drug Pipeline... Rapid Increase in SYK Inhibitor Value

[Asia Economy Reporter Hyunseok Yoo] Oscotec's stock price is on the rise. It appears that the analysis of being undervalued compared to the value of the three pipelines currently undergoing clinical trials is influencing the stock price.

As of 9:51 AM on the 2nd, Oscotec was trading at 23,500 KRW, up 1.95% (450 KRW) from the previous trading day.

Oscotec announced on the 2nd that it has completed the recruitment of 148 target patients for the global Phase 2a clinical trial of Cevidoplenib (SKI-O-703), a selective SYK kinase inhibitor, for rheumatoid arthritis.

Cevidoplenib, Oscotec's new drug candidate that selectively inhibits the SYK kinase protein, began dosing last April for rheumatoid arthritis patients who respond poorly to existing treatments. Patient recruitment was completed at a total of 42 hospitals: 10 in the US, 5 European countries with 30 hospitals, and 2 in Korea.

An official explained, "The SKI-O-703 compound, being developed as a treatment for autoimmune diseases, has already demonstrated safety and efficacy indicators up to Phase 1 clinical trials, and continues to show high safety even after completing patient recruitment for the multinational Phase 2a trial."

Furthermore, they added, "It is receiving continuous interest from multinational pharmaceutical companies. Once efficacy results in patients are confirmed, it will significantly enhance the new drug's value and meaningfully advance licensing negotiations."

Minjeong Seon, a researcher at Hana Financial Investment, explained, "Since the SYK inhibitor currently undergoing Phase 2a clinical trials has not yet proven efficacy in Phase 2a, its value is discounted using the 22.8% approval probability for autoimmune disease Phase 2 clinical candidates."

She continued, "If efficacy is proven in Phase 2, the approval probability significantly increases to 61.1%. The value of the SYK inhibitor will grow from 306.4 billion KRW to 821 billion KRW."

Additionally, she said, "If the AXL inhibitor enters clinical trials in the second half of this year, additional value will be assessed, potentially increasing Oscotec's corporate value. Considering that the SYK inhibitor is an innovative drug for rheumatoid arthritis treatment, we set the target stock price at 32,000 KRW."