Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

SK Biopharmaceuticals   / Equity Capital Markets

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In this insight, we provide further details on the <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals (BIO SK)</a> IPO, including the industry and competitive analysis. We have included all the major contract details of the company's major drug products including Cenobamate, Solriamfetol, and Relenopride that were available in the IPO prospectus in this insight.
The bankers have narrowed SK Biopharms' initial market cap in this IPO to be between 2.8 trillion won to 3.8 trillion won. This is below the 5 trillion won level in market cap that local <a href="https://pulsenews.co.kr/view.php?year=2019&amp;no=980809" target="_blank" rel="noopener">media</a> have mentioned for the company since 2019. 
</div>Cenobamate, an epilepsy drug that applied for NDA with the FDA in November 2018, was approved by the FDA for the marketing of new drugs in November 2019 and the company started to sell this product (under the name XCOPRI) in the U.S. in May 2020. In the epilepsy category, UCB had the leading market share of nearly 42% for three of its products including Vimpat, Keppra, and Briviact. <a href="https://www.smartkarma.com/entities/glaxosmithkline-plc" target="_blank" data-smartkarma-citation="entities:21960:1" rel="noopener">GlaxoSmithKline PLC (GSK LN)</a>, <a href="https://www.smartkarma.com/entities/sanofi" target="_blank" data-smartkarma-citation="entities:4564:1" rel="noopener">Sanofi (SAN FP)</a>, and <a href="https://www.smartkarma.com/entities/pfizer-inc" target="_blank" data-smartkarma-citation="entities:1131:1" rel="noopener">Pfizer Inc (PFE US)</a> also have sizeable market shares in this epilepsy category. The local <a href="https://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3070645" target="_blank" rel="noopener">media</a> have mentioned that Xcopri (Cenobamate tablets) could generate about 1.1 trillion won in sales per year for SK Biopharm if the drug takes about 5% global market share. The market for anti-epileptic treatments is expected to grow by 2.1% on average per year to grow from $4.9 billion in 2019 to $5.9 billion by 2026.


In this insight, we provide further details on the SK Biopharmaceuticals (BIO SK) IPO, including the industry and competitive analysis. We have included all the major contract details of the company's major drug products including Cenobamate, Solriamfetol, and Relenopride that were available in the IPO prospectus in this insight.
The bankers have narrowed SK Biopharms' initial market cap in this IPO to be between 2.8 trillion won to 3.8 trillion won. This is below the 5 trillion won level in market cap that local media have mentioned for the company since 2019. 
Cenobamate, an epilepsy drug that applied for NDA with the FDA in November 2018, was approved by the FDA for the marketing of new drugs in November 2019 and the company started to sell this product (under the name XCOPRI) in the U.S. in May 2020. In the epilepsy category, UCB had the leading market share of nearly 42% for three of its products including Vimpat, Keppra, and Briviact. GlaxoSmithKline PLC (GSK LN), Sanofi (SAN FP), and Pfizer Inc (PFE US) also have sizeable market shares in this epilepsy category. The local media have mentioned that Xcopri (Cenobamate tablets) could generate about 1.1 trillion won in sales per year for SK Biopharm if the drug takes about 5% global market share. The market for anti-epileptic treatments is expected to grow by 2.1% on average per year to grow from $4.9 billion in 2019 to $5.9 billion by 2026.

SK Biopharm IPO Industry Analysis & Contract Details

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<a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966" rel="noopener">SK Biopharmaceuticals (BIO SK)</a> is getting ready to complete an IPO in the Korean stock market in June. The SK Biopharm will be one of the biggest IPOs in the Korean stock market in 2020. Established in 1993, SK Biopharm has spearheaded the new drug development activities within the SK Group. According to the bankers' valuation, the expected market cap at the IPO is between 2.8 trillion won to 3.8 trillion won.
The IPO price range is from 36,000 won to 49,000 won and the IPO amount to be raised is from 705 billion won to 959 billion won. The book-building from the institutional investors will be from June 17th to 18th and the listing is expected to be in late June. The lead underwriters of this IPO include NH Investment &amp; Securities and Citi Global Markets. The joint book-runners include Morgan Stanley and Korea Investment &amp; Securities. 
To value SK Biopharm, the bankers took three major drugs made by the company including Cenobamate, Solriamfetol, and Carisbamate. The bankers then took the expected market size of each of these drugs and combined them which totaled 660.1 billion won. Then the EV/Pipeline multiple of 7.2x was applied, which resulted in an implied EV of 4.8 trillion won. After subtracting net debt, the implied market cap of SK Biopharm was 4.7 trillion won or 59,792 won per share. After applying IPO discount rates of 18.05% - 39.79%, this resulted in the IPO price range of 36,000 won to 49,000 won. 
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SK Biopharmaceuticals (BIO SK) is getting ready to complete an IPO in the Korean stock market in June. The SK Biopharm will be one of the biggest IPOs in the Korean stock market in 2020. Established in 1993, SK Biopharm has spearheaded the new drug development activities within the SK Group. According to the bankers' valuation, the expected market cap at the IPO is between 2.8 trillion won to 3.8 trillion won.
The IPO price range is from 36,000 won to 49,000 won and the IPO amount to be raised is from 705 billion won to 959 billion won. The book-building from the institutional investors will be from June 17th to 18th and the listing is expected to be in late June. The lead underwriters of this IPO include NH Investment &amp; Securities and Citi Global Markets. The joint book-runners include Morgan Stanley and Korea Investment &amp; Securities. 
To value SK Biopharm, the bankers took three major drugs made by the company including Cenobamate, Solriamfetol, and Carisbamate. The bankers then took the expected market size of each of these drugs and combined them which totaled 660.1 billion won. Then the EV/Pipeline multiple of 7.2x was applied, which resulted in an implied EV of 4.8 trillion won. After subtracting net debt, the implied market cap of SK Biopharm was 4.7 trillion won or 59,792 won per share. After applying IPO discount rates of 18.05% - 39.79%, this resulted in the IPO price range of 36,000 won to 49,000 won. 


South Korea

SK Biopharmaceuticals Co., Ltd. researches and develops new drugs. The Company develops and markets brain disorders treatment drugs, central nervous system disorders treatment drugs, and other products. SK Biopharmaceuticals markets its products worldwide.

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SK Biopharmaceuticals (326030 KS)

SK Biopharm IPO Industry Analysis & Contract Details

In this insight, we provide further details on the SK Biopharmaceuticals (BIO SK) IPO, including the industry and competitive analysis. We have...

Douglas Kim

SK Biopharm IPO Preview

SK Biopharmaceuticals (BIO SK) is getting ready to complete an IPO in the Korean stock market in June. The SK Biopharm will be one of the biggest...

Douglas Kim

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