IR Materials

Aug 11, 2022

[Analyst Report] OP in line on growing oligonucleotide sales

- BUY; 6M TP raised to W145,000

- The drop in OP was blamed on 1) an increase in payroll costs attributed to new hires to work in the new plant (up 59.4% yoy to W5.9bn) and 2) an uptick in R&D costs related to new clinical projects (up 51.1% yoy to W6.5bn).

- We believe this is a good harbinger of things to come given the company’s plans to complete the pre-approval inspections by 1H23 for a total of four drugs (including the treatments for myelodysplastic syndrome and mitochondrial deficiency syndrome) prior to commercialization.

- With discussions on the development of the mRNA capping technology underway, we may see more partnerships in 2H22.