[THE INVESTOR] Daewoong Pharmaceutical’s botulinum toxin is drawing expectations for entering the US market, said NH Investment and Securities on Jan. 8, raising the target price to 190,000 won (US$178.87) from 150,000 won.
Its toxin Nabota is expected to gain US approval in the second quarter, and the pharma firm’s earnings will be significantly boosted by its launch in the latter half, said analyst Koo Wan-seong.
Its revenue in the fourth quarter last year on a standalone basis rose 6.2 percent on-year to 226.3 billion won while operating profit fell 30.4 percent to 10.3 billion won, estimated the analyst, pointing out that investors should pay more attention to the pending approval than short-term revenue.
Daewoong’s revenue this year will increase 7.2 percent from 2017 to 943.2 billion won and operating profit by 32.6 percent to 64.4 billion won. Revenue from exports will reach 128.2 billion won, forecast Koo.
When Nabota wins approval from the US, its R&D momentum will be maximized, added the analyst maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)