Boryung Pharmaceutical Group affiliate Boryung is expected to surpass 1 trillion KRW in sales this year. SangSangin Securities also raised Boryung's target stock price reflecting the improved earnings outlook.
On the 26th, analyst Ha Taegi of SangSangin Securities stated, "Boryung's flagship product, the hypertension treatment 'Kanarb,' nearly reached 140 billion KRW in sales last year," adding, "The growth of Kanarb created synergy in the prescription drug (ETC) sales sector targeting hospitals and clinics, which also led to growth in the anticancer and diabetes treatment sectors."
Analyst Ha also pointed to Boryung's LBA strategy as a reason for its high growth. LBA refers to a strategy of acquiring all rights related to production, sales, and patents from overseas pharmaceutical companies whose patents have expired, distinguishing it from merely purchasing distribution rights. Boryung has acquired domestic distribution rights for Lilly's anticancer drug Gemzar (2020), schizophrenia treatment Zyprexa (2021), and non-small cell lung cancer drug Alimta (2022), among others.
Ha forecasted, "Starting in 2024, sales of K-CAB, a treatment for gastroesophageal reflux disease, will generate sales in the 170 billion KRW range, enabling a sales quantum jump," projecting Boryung's sales this year to exceed 1 trillion KRW, reaching 1.0874 trillion KRW. However, he advised, "With more than four generic versions of Kanarb, for which Boryung holds the patent, expected to be launched, prices will likely drop by about 30%," noting that "there remains a challenge in defending profitability."
According to SangSangin Securities, pharmaceutical companies in Korea that have surpassed 1 trillion KRW in sales include Hanmi Pharmaceutical (market cap 4.3 trillion KRW), Daewoong Pharmaceutical (1.3 trillion KRW), Chong Kun Dang (1.5 trillion KRW), Green Cross (1.3 trillion KRW), and Yuhan Corporation (4.8 trillion KRW). All these companies have market capitalizations exceeding 1 trillion KRW. It is analyzed that Boryung may soon join the 1 trillion KRW market cap club alongside its sales growth.
He said, "From a long-term perspective, I positively evaluate Boryung's growth potential," maintaining the existing 'Buy' investment rating and raising the target stock price to 19,000 KRW.
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