[Click eStock] "Eensel, CMO Business Growth Expected"

On the 10th, SK Securities forecasted that Encell would achieve its first growth through its CMO business and significantly build its performance through the development of three stem cell new drugs currently undergoing clinical trials.

Seonjae Heo, a researcher at SK Securities, explained, "The CMO business is expected to align with the growth of the rapidly expanding domestic and international CGT treatment market," adding, "Global big pharma and bio ventures are rushing into the CGT market, which can fundamentally treat genetic diseases, cancer, and autoimmune diseases that are difficult to solve with existing treatment methods."

He further emphasized, "The global CGT market size is expected to grow from 40 trillion won this year to about 180 trillion won by 2030," and "Since CGT drugs are ultra-high-priced, difficult to mass-produce, and have high manufacturing costs, the outsourcing ratio is expected to exceed 80%."

Researcher Heo analyzed, "Encell is responsible for the domestic semi-finished product production of Novartis and Janssen's CAR-T therapies 'Kymriah' and 'Carvykti'," and "It has secured sufficient references by winning 33 projects from a total of 17 companies." He also predicted, "Growth will follow new orders and progress in clinical stages of existing orders," and "As of the first half of this year, the order backlog stands at 14 billion won, with new orders expected to concentrate in the fourth quarter."

He explained, "Currently, there are three rare muscle disease new drug pipelines," and "It would be good to focus on the Charcot-Marie-Tooth (CMT) pipeline, which has the most advanced clinical schedule." He also judged that "the overhang resolution phase has begun due to the release of one-month lock-up shares."