LNKBio is showing strong performance. It appears that securities firms' analysis, which forecasts high growth due to entry into the US market, has had an impact.
As of 9:58 AM on the 2nd, LNKBio was trading at 7,670 KRW, up 760 KRW (11.00%) compared to the previous trading day.
Shinhan Investment Corp. evaluated LNKBio as currently conducting a large-scale project utilizing high value-added XTP products and that its entry into the US market is becoming visible. LNKBio is a seller of spinal implant products for orthopedic medical devices. It has established a full lineup related to spinal surgery. It is the first domestic company to enter the US market, which accounts for 70% of the spinal implant market.
Jiwoo Baek, a researcher at Shinhan Investment Corp., said, "This is a phase where expectations for high growth are strengthening due to the entry of high value-added products into the US market," adding, "We developed the world's first curved height-expandable cage (XTP) and are conducting projects with major US hospitals."
He explained, "The goal is to secure sales points by accumulating more than 5,000 surgical cases," and "Currently, projects are underway with half of the top 10 hospitals in the US."
Shinhan Investment Corp. expects LNKBio's sales next year to increase by 75% compared to the same period last year to 61.2 billion KRW, and operating profit to turn positive, reaching 12.3 billion KRW. He emphasized, "We believe that most of the stringent US market entry barriers such as clinical processes, FDA approval, distribution network establishment, and surgical experience have been overcome," and "If Globus Medical, considered a competitor, completes its entry into the US market with a corporate value evaluated at around 8 trillion KRW, a rapid stock price re-rating will be possible."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
