[Click eStock] "Yuhan Yanghaeng Confirms Possibility of US FDA Approval for Non-Small Cell Lung Cancer Treatment"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 27th that it maintains a buy rating and a target price of 92,000 KRW for Yuhan Corporation, reflecting improved profitability due to normalization of increased advertising expenses during last year's launch of Wisebiome, changes in the number of shares due to a bonus issue, and the clinical success probability of the non-small cell lung cancer treatment 'Reclaza' (generic name Lazertinib).

This year, Yuhan Corporation's sales are expected to increase by 11.9% year-on-year to 1.9401 trillion KRW, and operating profit is expected to rise by 68.2% to 108.8 billion KRW. Sales of over-the-counter drugs are expected to increase with the full-scale launch of the probiotic Wisebiome, and sales growth is anticipated through milestone recognition from Gilead.

In the fourth quarter of last year, consolidated sales are expected to increase by 1.9% to 470.1 billion KRW, and operating profit is expected to grow by 23.4% to 20.8 billion KRW. Approximately 78 billion KRW in royalty income is recognized, and milestone recognition of about 10 million USD is expected due to the entry into Phase 1 clinical trials in Europe for the new drug (YH25724) licensed out to Boehringer Ingelheim. Sales from new products such as Reclaza and Wisebiome are expected to meet market expectations.

Jae-kyung Park, a researcher at Hana Financial Investment, said, "Lazertinib has confirmed the possibility of FDA approval," adding, "YH25724, licensed to Boehringer, entered Phase 1 clinical trials in Europe in the fourth quarter of last year, and the NASH candidate licensed to Gilead is expected to enter preclinical trials this year, marking the start of active development. The allergy pipeline YH35324 entered Phase 1 clinical trials in September last year and is expected to complete them in the fourth quarter of this year."