[Click eStock] "SK Biopharm, US Tariff Concerns Are Overstated"

On the 8th, DS Investment & Securities analyzed that concerns about the impact of tariffs imposed by the Trump administration in the United States on Xcopri (generic name cenobamate), an epilepsy treatment independently developed by SK Biopharm and sold in the U.S., are excessive.

Earlier, U.S. President Donald Trump, who announced high reciprocal tariffs exceeding 10% on major countries, stated that "additional separate tariffs will be imposed" regarding pharmaceutical tariffs. SK Biopharm proactively obtained FDA approval for changes in new drug production at its contract manufacturing organization (CMO) facilities in the U.S. Furthermore, it has secured about six months' worth of inventory in advance within the U.S., allowing the use of stock during the period required to respond to tariff changes.

Analyst Kim Min-jung estimated, "The service fee for the U.S. CMO facilities is expected to be relatively higher compared to the existing Canadian CMO, but the cost of goods sold ratio for Xcopri is very low, so it will be relatively free from tariff impacts."

Meanwhile, DS Investment & Securities expects SK Biopharm to introduce a second pipeline following Xcopri as early as mid-year. If a pipeline that can utilize the existing sales network is introduced, the leverage effect is expected to be maximized.

DS Investment & Securities forecasted that SK Biopharm will achieve annual sales of KRW 694.4 billion and operating profit of KRW 154.4 billion this year, based on sales growth of Xcopri in the U.S. and the effect of a strong exchange rate. These figures represent increases of 26.8% and 60.4%, respectively, compared to last year. The investment opinion 'Buy' and target stock price of KRW 150,000 were maintained.