[Click eStock] "Yuhan Yanghang, Lung Cancer Treatment Sales to Start in Full Scale This Year"

Expecting Approval from the US and Europe

Korea Investment & Securities analyzed on the 9th that sales of the lung cancer treatment drug Reklaza by Yuhan Corporation will become full-fledged this year, and approvals in the US and Europe are expected. They maintained a 'Buy' investment rating and a target price of 80,000 KRW.

Researchers Oh Eerim and Kim Jeongchan stated, "We believe there will be no significant obstacles to obtaining approval for Reklaza in the US and Europe," adding, "Additionally, important efficacy evaluation data such as OS (Overall Survival) data disclosure and the efficacy of additional pipelines are expected within this year." In December last year, Johnson & Johnson, Yuhan's partner, simultaneously submitted approval applications to US and European authorities for the combination therapy of Librelvant and Reklaza. Yuhan, which developed Reklaza, has taken its first step toward entering the global market.

The two researchers noted, "Until insurance reimbursement is confirmed, the drug has been supplied free of charge to new first-line treatment patients," adding, "Although costs increased temporarily, this is expected to lead to market preemption effects and advertising cost savings in the future." Through the Expanded Access Program (EAP), Yuhan supplied the drug free of charge to about 900 patients until December last year. This was the first case among domestic new drugs to be approved first in Korea and to conduct an EAP. The number of lung cancer patients in Korea is estimated to be about 32,000, with an expected annual growth rate of 2.8%.

Meanwhile, Yuhan's consolidated sales for the fourth quarter of 2023 are projected to be 476.7 billion KRW, with an operating profit of 8.8 billion KRW. Compared to the same period in 2022, sales increased by 5.8%, while operating profit decreased by 49.6%. Sales from the pharmaceutical division are expected to show solid growth at 395.8 billion KRW, but due to seasonal effects, overseas business sales are expected to decline (26.1 billion KRW), limiting the growth rate.