On the 17th, Korea Investment & Securities analyzed that Cell Biotech is expected to improve profitability while also possessing reagent momentum. No investment opinion or target price was provided.
Cell Biotech is a company specializing in the development and production of probiotics. Its competitiveness lies in the "excellence of strains" and "dual coating technology." It holds the largest number of strains worldwide that have been verified by the FDA as safe and effective. By dual coating the strains, the survival rate in the intestines is 100 times higher than before, and the dual coating technology is patented in Korea, the United States, Europe, China, and Japan.
Dohee Lee, a researcher at Korea Investment & Securities, said, "Cell Biotech has expanded its business into the new drug development field through the discovery of active substances and the lactic acid bacteria drug delivery system (DDS) platform technology," adding, "Currently, it is preparing for Phase 1 clinical trials of PP-P8, an oral colon cancer treatment candidate."
He stated, "PP-P8 has advantages over existing colon cancer treatments in terms of price and side effects, and its long-term and combination use potential offers great scalability," and added, "In addition to anticancer effects, it has been confirmed to alleviate intestinal imbalance, so when administered to actual living organisms, it is expected to have a strong synergy with anticancer action."
He emphasized, "If the pipeline value is reflected in the stock price according to the progress of new drug development, it can act as a positive momentum for corporate value," and continued, "In the mid to long term, it is expected that the pipeline can be expanded by combining the candidate substances and platform technologies currently held by Cell Biotech." He added, "If the pipeline value is reflected in the stock price according to the progress of new drug development, it can act as a positive momentum for corporate value."
Along with this, profitability is expected to improve this year. Korea Investment & Securities forecasts that Cell Biotech's sales and operating profit this year will increase by 9.5% and 320.6% year-on-year to 58.9 billion KRW and 9.2 billion KRW, respectively. He said, "Domestic health functional food competition is intensifying and the industry is sluggish, so domestic sales are stagnant, but overseas OEM and ODM sales are expected to drive performance."
He emphasized, "On average, 60% of export sales are to Europe and 40% to Southeast Asia, and since the health functional food markets in both regions are expanding, benefits are expected accordingly," adding, "OEM and ODM sales to China will also start within the year, and future sales to China are expected to be an additional growth factor."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
