[Click eStock] "SK Biopharm, Core Product Sales Continue High Growth"... Coverage Initiated

[Asia Economy Reporter Lee Jung-yoon] Heungkuk Securities announced on the 24th that it is initiating coverage on SK Biopharm with a Buy rating and a target price of 120,000 KRW, citing the continued strong sales growth of its main product, Xcopri.

The prescription count (TRx) and net sales of SK Biopharm's epilepsy treatment drug XCOPRI have been growing every quarter since its launch in May 2020. Sales have increased steadily from 2.1 billion KRW in Q2 2020 to 31.7 billion KRW in Q1 this year without any decline. According to market research firm GlobalData, XCOPRI's sales are expected to reach $1.47 billion USD (approximately 1.8 trillion KRW) by 2027, driven by the growth of the epilepsy market and strong efficacy data in seizure control.

Heungkuk Securities' estimates suggest that SK Biopharm is expected to return to profitability in 2024.

Researcher Lee Na-kyung of Heungkuk Securities explained, "In 2022, selling and administrative expenses are expected to increase due to higher R&D costs from entering Phase 3 clinical trials for carisbamate and direct marketing expenses through the US overseas subsidiary," adding, "Considering the significantly low cost of goods sold ratio for XCOPRI, profitability is expected to be achieved when sales reach a level sufficient to cover the previously incurred selling and administrative expenses exceeding 300 billion KRW."