HanAll Biopharma is showing strong performance. News that its overseas licensing partner confirmed the competitiveness of the new drug candidate 'Batoclimab' appears to be influencing the stock price.
As of 11:03 AM on the 27th, HanAll Biopharma was trading at 43,850 KRW, up 5,800 KRW (15.24%) from the previous trading day.
Minyong Eom, a researcher at Hyundai Motor Securities, explained, "It can be seen that HanAll Biopharma receives about half of Immunovant's profits. Compared to Immunovant's market capitalization of approximately 7.4 trillion KRW, HanAll Biopharma's market capitalization is about half, so its current value can be considered to exceed 3.7 trillion KRW."
He added, "Even when considering only the royalties received from sales in the US and European markets where licensing agreements have been made, HanAll Biopharma's rock bottom price should maintain at least one-third of Immunovant's market capitalization, around 2.4 trillion KRW."
He stated, "It is judged to be in an extremely undervalued state," and emphasized, "I am raising the target stock price to 70,000 KRW by adjusting the clinical success rate and sales growth rate following the success of the Phase 2 clinical trial for Graves' disease."
Researcher Eom forecasted, "Once the entry into the Phase 3 clinical trial for Graves' disease, which clearly outlines the market launch timeline, is confirmed, and the decision on entering Phase 2/3 clinical trials for rheumatoid arthritis is made, the value of HanAll Biopharma and Immunovant will be completely different from now." He added, "I expect it to become a company surpassing Argenx. Immunovant is now at a market capitalization level similar to Argenx's announcement of the Phase 2 ITP trial on September 16, 2018. Since Immunovant was the first to succeed in Phase 2 for Graves' disease, it can be considered similar to the time when Argenx succeeded in Phase 2 for ITP, and the market capitalization is also similar."
Argenx is a Nasdaq-listed company with a market capitalization reaching 28.7 trillion KRW.
According to HanAll Biopharma, its US partner Immunovant announced on the 20th (US time) that 'IMVT-1401' (generic name: Batoclimab) secured efficacy in the Phase 2 trial in the US for patients with Graves' disease. HanAll Biopharma licensed Batoclimab to Immunovant in 2017. Immunovant, which is conducting clinical trials, holds the US and European rights for Batoclimab.
Following the failure of the Phase 3 trial of 'Vibgart' SC formulation for pemphigus (an autoimmune disease causing blisters on skin and mucous membranes) by competitor Argenx on the 19th (US time), the clinical trial results of IMVT-1401 are receiving even more attention.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
