[Featured Stock] L&K Bio Rises on Expectations of Large-Scale Supply Contract with Global Medical Company

[Asia Economy Reporter Hyunseok Yoo] L&K Bio is showing strong performance. It appears that securities firms' analysis expecting a large-scale supply contract with a global medical device company has influenced this.

As of 11:07 AM on the 20th, L&K Bio was trading at 17,300 KRW, up 5.81% (950 KRW) compared to the previous trading day.

Hanyang Securities stated in a report on the same day that a large-scale supply contract with a global medical device giant is expected for L&K Bio.

Byungyong Oh, a researcher at Hanyang Securities, said, "L&K Bio's new Expandable Cage product is becoming a major target for global medical device giants," adding, "Currently, we are negotiating licensing contracts for the product with several major U.S. companies."

He explained, "Even with existing dealership contracts alone, sales worth hundreds of billions of KRW are expected. Apart from licensing contracts with global giants, we have already completed sales contracts with about 40 small to medium-sized dealerships in the U.S.," and added, "The number of dealership contracts is expected to increase to about 60 by the end of the year."

The average annual sales per dealership are expected to be around 1.1 billion KRW. He emphasized, "Simply put, sales and operating profits in the hundreds of billions of KRW can be expected from dealership sales alone in 2021. On top of that, large-scale supply contracts with major companies are an additional factor. Considering L&K Bio's market capitalization, which is still only about 200 billion KRW, a positive stock price trend is expected going forward."