[Click e-Stock] "SK Biopharm, Solid Prescriptions... Mid- to Long-Term Growth Expected"

On May 12, IBK Investment & Securities maintained its "Buy" investment rating and a target price of 140,000 won for SK Biopharm, stating that "expectations for mid- to long-term growth remain valid due to a steady increase in prescription numbers."

Researcher Jung Isu explained, "In particular, the DTC (Direct-to-Consumer) advertising campaign starting this month is expected to accelerate the expansion of prescriptions. In addition, as the Phase 3 clinical trial for generalized seizures is scheduled to conclude within this year, full-scale operating leverage effects are anticipated from 2026."

He further added, "Although the recent uncertainty regarding U.S.-imposed pharmaceutical tariffs is weighing on investor sentiment in the short term, gradual share price recovery should be possible through second-quarter results."

SK Biopharm posted consolidated sales of 144.4 billion won and operating profit of 25.7 billion won in the first quarter of this year. These figures represent increases of 26.7% and 149.3%, respectively, compared to the same period last year. However, they fell short of market consensus (sales of 157.5 billion won and operating profit of 34.3 billion won) by 8.3% and 25.2%, respectively.

U.S. sales of Xcopri, the company’s flagship epilepsy treatment, reached approximately $91.7 million, up 34.1% year-on-year but showing a slight decrease compared to the previous quarter. Regarding this, Jung explained, "Wholesalers secured inventory in advance due to the price increase implemented at the beginning of the year. In addition, temporary factors such as the large-scale closure of Walgreens, a major pharmacy chain in the U.S., and wildfires in the western U.S. region also played a combined role."

Nevertheless, due to the rise in the won-dollar exchange rate, Xcopri’s sales in won terms increased to 133.3 billion won, up 3.1% from the previous quarter. The overall operating margin also improved to 17.8%, an increase of 8.8 percentage points year-on-year, reflecting enhanced profitability.