[Click eStock] 'Exchange Rate Effect' Nabota Expands North American Exports... Daewoong Pharmaceutical, Target Price Up

[Asia Economy Reporter Ji Yeon-jin] SangSangIn Securities announced on the 21st that it is raising the target stock price of Daewoong Pharmaceutical to 250,000 KRW, stating that the export of Nabota, a botulinum toxin product, will increase in the second half of this year and next year, and the growth momentum will be further strengthened with the addition of new products.

Daewoong Pharmaceutical's sales in the first half of this year reached 620.4 billion KRW, a 28.7% increase compared to the previous year. This was due to the increase in Nabota exports and the recovery of prescription drug (ETC) sales. In the first half of this year, Nabota export sales amounted to 52 billion KRW, a 136% increase compared to the same period last year. It is analyzed that exports to the North American market through partner Evolus increased significantly, unaffected by exchange rate effects.

In Europe, Nabota was launched under the brand name Nuciva in September 2022. In Australia, partner Evolus has submitted a Biologics License Application (BLA), and approval is expected by mid-next year. To enter the Chinese market, Daewoong Pharmaceutical has completed Phase 3 clinical trials in China and plans to obtain product approval and launch by mid-next year.

Researcher Ha Tae-gi of SangSangIn Securities said, "Nabota exports are expected to grow rapidly in 2023 as exports to North America increase significantly along with the exchange rate rise effect, and exports to Europe also join in," adding, "With European exports in the second half of this year, the total annual Nabota sales for 2022 are expected to increase by 73% compared to the previous year, reaching 137.7 billion KRW."

Additionally, the domestic launch of P-CAB mechanism next-generation gastroesophageal reflux disease drug Pexuclu in July is also expected to drive performance improvement. The competing product, HK Innoen's K-CAB, has grown to an annual sales scale of around 100 billion KRW. Pexuclu is expected to establish its position in the market with sales around 10 billion KRW this year and to grow significantly from 2023. In March this year, Daewoong Pharmaceutical applied for product approval for the diabetes treatment Inavogliflozin (SGLT-2 receptor inhibitor). It is expected to be approved within this year and launched around mid-next year.