[Click eStock] "PharmaResearch Raises Target Price to 700,000 Won After Spin-off Withdrawal"

On July 21, Samsung Securities raised its target price for PharmaResearch to 700,000 won, following the company's recent decision to withdraw its planned spin-off.

Jung Donghee, an analyst at Samsung Securities, projected that PharmaResearch would record sales of 132.5 billion won and operating profit of 53.2 billion won in the second quarter of this year, representing year-on-year increases of 59.4% and 72.8%, respectively.

Jung explained that these results are attributable to continued domestic growth of Rejuran driven by an increase in procedures among Korean patients and the impact of medical tourism, as well as record-high quarterly shipments to major export markets such as China, Japan, and Ukraine.

He maintained a "Buy" rating on PharmaResearch and raised the target price by 200,000 won to 700,000 won from the previous 500,000 won. He cited the withdrawal of the spin-off plan, which was announced last month and then canceled on July 8, as having alleviated concerns about shareholder value dilution.

Jung stated, "The withdrawal of the spin-off has resolved short-term uncertainties and concerns about the dilution of minority shareholder value due to potential dual listings." He added, "Reflecting the continued quarterly growth of Rejuran, we are raising our sales estimates for 2025 and 2026 by 8.1% and 17.3%, respectively, compared to previous forecasts."

He continued, "Momentum for portfolio expansion remains strong, with the completion of a European partner contract expected in the third quarter of this year, launches in 10 countries planned within the year, and new sales growth from the domestic launch in July of the PLLA filler Evercl (Galderma's Sculptra is also a PLLA filler)."

He also noted, "The 2029 sales target of 1 trillion won that PharmaResearch Group presented during the original spin-off announcement remains valid."