[Click eStock] "Daewoong Pharmaceutical, Nabota Growth... Overseas Sales Growth Expected"

IBK Investment & Securities Report

[Asia Economy Reporter Minji Lee] IBK Investment & Securities on the 5th issued a buy rating and a target price of 230,000 KRW for Daewoong Pharmaceutical.

Since the resolution of the US patent dispute through a tripartite agreement (Allergan, Medytox, Evolus) in February last year, the company has been actively entering the US market. Evolus recorded sales of 37 million USD in the first half of this year, a 46% increase compared to the previous year. The company's Nabota export sales reached 2 billion KRW, a 135% increase from last year.

With a millennial strategy based on price competitiveness, market share in the US is expected to gradually expand. Researcher Seonkyung Lee analyzed, “There is potential for competitor customer inflow due to inflation, and market entry into Europe in the second half of the year and Australia and China next year is anticipated. Considering the ongoing clinical research accelerating entry into the therapeutic market, which accounts for 57% of the botulinum toxin market, Nabota’s rapid growth is just beginning.”

Fexclu, developed in-house, is a P-CAP mechanism gastroesophageal reflux disease treatment launched in July. Based on the superior competitiveness of the P-CAP formulation and the Nexium (PPI) sales force secured over the past decade, rapid market share expansion is expected.

Enblo, the second new drug planned for domestic release next year, is an SGLT-2 inhibitor that can be expanded not only as a diabetes treatment but also as a CKD treatment. Researcher Seonkyung Lee stated, “Considering the low cost of goods sold ratio characteristic of new drugs, improvement in operating profit margin due to sales growth is also expected to become visible.”