[Click eStock] "SK Biopharm, Full-Scale Growth Starting in 2025"

Daishin Securities analyzed that SK Biopharm has secured new growth drivers thanks to the sales growth of Xcopri, an epilepsy drug. They maintained a buy rating and set a target price of 160,000 KRW.

Lee Hee-young, a researcher at Daishin Securities, stated, "SK Biopharm achieved an annual turnaround to profitability thanks to Xcopri," adding, "Based on the generated cash flow, it is expected to secure new growth drivers such as the introduction of a second product and the development of radioactive pharmaceutical new drugs."

SK Biopharm's consolidated operating profit for last year was tentatively estimated at 96.3 billion KRW, turning profitable compared to the previous year's operating loss of 37.5 billion KRW. Sales increased by 54.3% year-on-year to 547.6 billion KRW. Net profit also turned positive at 227 billion KRW.

The researcher predicted that Xcopri will accelerate its growth. He said, "Due to the characteristics of Xcopri as a low-cost small molecule compound, it significantly contributed to high profit margins with a gross profit margin of 90% and an operating profit margin of 18%," and added, "With excellent clinical efficacy, accumulation of real prescription data, strengthened sales and marketing effects, and expanded indications, it is expected to achieve annual sales of 1 trillion KRW by 2027."

From this year, SK Biopharm is expected to visibly reinvest the cash flow generated from Xcopri to accelerate sales growth and secure new research and development pipelines as next-generation growth drivers. The researcher said, "They are pursuing the introduction of a second product that can utilize the US sales network in the first half of the year," adding, "Additional sales are expected within the year, and there is potential for valuation upgrades due to clinical progress of new drug pipelines involving radioactive pharmaceuticals."