[Click eStock] "EuBiologics, Global Cholera Surge... Sole Worldwide Vaccine Supplier"

On April 28, Hanyang Securities analyzed that as cholera cases surge worldwide, EuBiologics, the only global supplier of cholera vaccines, is expected to achieve record-breaking results.

Cholera is a representative epidemic prevalent in developing countries, primarily transmitted through contaminated water and food in regions such as Africa and the Middle East. Infection causes severe diarrhea and vomiting, and in severe cases, can lead to death. Accordingly, the World Health Organization (WHO) is working to curb cholera outbreaks through support for daily living, diagnostic kits, and vaccines.

Oh Byungyong, a researcher at Hanyang Securities, stated, "EuBiologics in Korea is a company that produces the 'Euvichol' series (Euvichol, Euvichol Plus, Euvichol S), cholera vaccines that are pre-qualified by WHO." He added, "With Sanofi's competing vaccine 'Shanchol' withdrawing from the market at the end of 2023, 'Euvichol' is now the only cholera vaccine available globally." He emphasized, "EuBiologics has become the sole supplier of cholera vaccines to WHO."

EuBiologics is currently experiencing a sharp increase in performance thanks to the recent spread of cholera. In 2023, the company achieved sales of 69.4 billion KRW and an operating profit of 7.7 billion KRW, successfully turning a profit. Last year, sales surged by 38.4% to reach 96 billion KRW. Researcher Oh predicted, "This high growth trend is expected to continue for the time being due to the rapid increase in demand for cholera vaccines."

The number of global cholera cases is rising rapidly. According to WHO statistics, the number of cholera cases increased from approximately 220,000 in 2021 to about 800,000 in 2024. In response, WHO elevated the cholera crisis to Grade 3 emergency, the highest level of response, in 2023. According to data released by GAVI (the Global Alliance for Vaccines and Immunization), an average of 85 million doses of cholera vaccine will be needed annually until 2030, and under a high-demand scenario, as many as 220 million doses per year may be required.

Researcher Oh stated, "Currently, EuBiologics is the only supplier of cholera vaccines, and from the perspective of international organizations, expanding EuBiologics' vaccine production capacity has become a key task in controlling the spread of cholera." He added, "EuBiologics is expected to be the greatest beneficiary of the increasing vaccine demand."

There is also analysis that EuBiologics is virtually certain to achieve record-high results this year. Researcher Oh explained, "Each year, the company receives an award letter from WHO at the end of the year requesting cholera vaccine supply. At the end of last year, it received a record-high request for 72 million doses." He analyzed, "Therefore, it is certain that this year's performance will be the highest since the company's founding."

This year, EuBiologics' sales are expected to reach 146.5 billion KRW, a 52.5% increase from the previous year, and operating profit is expected to reach 60.5 billion KRW, a 76.3% increase. In particular, rapid growth is expected to begin in earnest from the first quarter of this year. Researcher Oh evaluated, "The price-to-earnings ratio (PER) for this year is only 9.4 times. Considering the growth potential due to the sharp increase in demand for cholera vaccines, as well as the company's pipeline including the typhoid vaccine (phase 3 completed), meningococcal vaccine (phase 2/3 ongoing), and RSV virus vaccine (phase 1 ongoing), the current stock price is considered to be in a severely undervalued range."