In today’s briefing:
- Prodia (PRDA IJ) – Shaking off the COVID Factor
- SK Biopharmaceuticals (326030 KS): Xcopri US Sales Doubled in 2022; More Stream Still Left
- [RemeGen (9995 HK) Target Price Change]: Chinese Biotech Must Confine to the Biotech Role
- BNC Korea (256840 KS): Margin Pressure; Base Business Faces Regulatory Risk; COVID Drug in Doldrum
Prodia (PRDA IJ) – Shaking off the COVID Factor
- Prodia booked a softer set of numbers in 1Q2023 but reflected a higher COVID base plus 1Q2023 was impacted by the fasting month but the testing mix was positive.
- The company will significantly increase capex this year with more outlet expansion and more investment into its digital business, which is becoming an increasingly important growth driver.
- Prodia (PRDA IJ) stands out as the unique diagnostic leader in Indonesia, which trades at a significant discount to both local healthcare players and Indian diagnostic peers.
SK Biopharmaceuticals (326030 KS): Xcopri US Sales Doubled in 2022; More Stream Still Left
- For 2022, SK Biopharmaceuticals Co Ltd (326030 KS) recorded Xcopri U.S. revenue of KRW169B, up 116% YoY. This year, the company expects to secure Xcopri sales of ~KRW300B in U.S.
- Thus far, Xcopri has been launched in 15 countries in Europe. The company expects to launched Xcopri in eight more countries in Europe this year.
- By 2025, SKBP plans to submit sNDA for cenobamate in primary generalized tonic-clonic (PGTC) seizures and pediatric patients, and carisbamate for orphan pediatric epilepsy.
[RemeGen (9995 HK) Target Price Change]: Chinese Biotech Must Confine to the Biotech Role
- RemeGen’s C1Q23 top line came in as 31% of our C1H23 estimate while IFRS operating loss came in as 55%.
- C1Q23 gross margin exceeded our C1H23 estimate by 12ppt, mainly due to restraining in shipment
- We cut our product sales estimates and raise WACC by 1ppt to reflect concentrated risk, leading to TP reduction from US$64 to US$46.
BNC Korea (256840 KS): Margin Pressure; Base Business Faces Regulatory Risk; COVID Drug in Doldrum
- During 2022, BNC Korea (256840 KS) reported gross profit margin of 48.3%, lower than 51.9% reported in 2021, as increasing competition is leading to price erosion of botulinum toxin products.
- In March 2023, prosecutors have indicted BNC Korea for allegedly selling botulinum toxin injections to exporters without the approval of the MFDS from December 2015 to December 2021.
- With the pandemic on a downward trend for more than a year now, we are skeptical about BNC Korea’s in-licensed COVID-19 drug candidate for a milestone payment of $15M.
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