[Click eStock] Boryung Pharmaceutical, Anticancer Drug Business Growth "Positive Stock Trend Continues"

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities stated on the 13th that it is necessary to pay attention to Boryung Pharmaceutical's focus on the business capabilities of its anticancer drug division and the resulting growth trend, maintaining a 'Buy' investment rating and a target price of 35,000 KRW.

Boryung Pharmaceutical plans to concentrate its business capabilities on the anticancer drug sector going forward. Due to the increase in cancer patients following the aging trend, sales of Boryung Pharmaceutical's representative anticancer drug products have been rising annually. The key anticancer drug products held by Boryung Pharmaceutical include Gemza (Lilly), Genexol (Samyang Biopharm), Xeloda (Roche), and Megecis (BMS). The company plans to expand its portfolio of BIO pharmaceuticals and innovative anticancer drugs, aiming to increase the number of anticancer drug items to more than 20 by 2025. Total sales of the anticancer drug product group increased from 66.9 billion KRW in 2015 to 110 billion KRW in 2019, with plans to grow to 200 billion KRW by 2025. Accordingly, it is necessary to focus on the business capabilities concentration of the anticancer drug division and the resulting growth trend.

The upcoming listing of the immuno-cell anticancer biotech company VigenCell, which is preparing for IPO this year, is also expected to be an important driver in enhancing Boryung Pharmaceutical's corporate value. The effects of the new Yesan plant are gradually emerging as well. The Yesan plant, built on a 145,000㎡ site, consists of lines specialized in solid oral dosage forms and anticancer drugs, with an investment of approximately 160 billion KRW. The production capacity of solid oral dosage forms at the Yesan plant is 870 million tablets, and for anticancer injectables, it is 6 million vials. Boryung Pharmaceutical obtained GMP approval for the Yesan new plant in October 2019 and started line operations, and in November last year, it received GMP approval for the anticancer injectable line and began production of anticancer drug items. Currently, the company is preparing for EU GMP certification and plans to actively secure CMO business along with its own products to increase plant utilization rates.

Moon Kyung-jun, a researcher at IBK Investment & Securities, said, "Boryung Pharmaceutical is enhancing the added value of its business through active R&D investment based on the growth of the new drug Kanab family and anticancer drug items," adding, "Based on the stable growth of existing metabolic disease and anticancer drug items, the company is expanding its business area to CNS (central nervous system diseases), so positive stock price trends are expected to continue in the future."