[Special Stock] FutureChem's Pipeline Value 760 Billion Won... US Comparable Companies' Market Cap 1.8 Trillion Won

[Asia Economy Reporter Hyungsoo Park] FutureChem is showing strong performance. Securities firms' analysis that the prostate cancer treatment under development is undervalued compared to its value seems to have influenced the stock price.

As of 10:05 AM on the 3rd, FutureChem is trading at 19,400 KRW, up 13.45% from the previous day.

Minyong Eom, a researcher at Hyundai Motor Securities, analyzed, "Looking at the phase 1 clinical trial protocol of FutureChem's prostate cancer treatment (FC705) currently underway, it appears to be effective at doses 50% lower than those of the global pharmaceutical company Novartis."

He added, "It is expected to simultaneously apply for the pre-planned IND for the US phase 1/2a clinical trial in December this year," and explained, "This means it is also possible to receive the FDA's Breakthrough Therapy designation like Novartis."

Furthermore, he emphasized, "The value of FutureChem's FC705 pipeline is at least $650 million to $780 million, even when applying a success rate of 25.9% to Novartis PSMA617's current value of $2.5 billion to $3 billion."

He added, "It is undervalued compared to the pipeline value and the possibility of technology transfer next year."

Novartis acquired AAA's Lutathera, a developer of radiopharmaceuticals and companion diagnostic products, for $3.9 billion at the phase 3 clinical stage in 2017. Novartis also introduced PSMA617 for about $2.1 billion in 2018.

Researcher Eom said, "Currently, the phase 3 clinical trial is completed and it has Breakthrough Therapy designation," and expressed expectations that "PSMA617 showed a higher incidence of side effects compared to the standard of care (SOC) in phase 3 clinical trials, so FC705 could be highlighted as an alternative to reduce side effect risks."

He also said, "US-based Lantheus is also a company developing radiopharmaceutical prostate cancer treatments," and "It can be considered the closest peer group to FutureChem." Additionally, he introduced, "The clinical trial stages are also very similar," and "Its current market capitalization is about $1.6 billion (1.88 trillion KRW)."