IR Materials

Feb 28, 2022

[Analyst Report] Slips to operating loss due to costs, deferred oligo sales

- 4Q review: ST Pharm posted an operating loss in 4Q, as oligonucleotide (or oligo) sales were deferred to 1Q22 and on one-offs (eg, provisioning). The company should perform much stronger in 2022, backed by growing oligo orders.

- 2022 outlook: We raise our 2022 sales and operating profit forecasts by 12.9% and 44%, respectively, to KRW232.2b (up 40.2% y-y) and KRW27.5b (up 11.8% y-y). Our estimates have sales from: 1) oligonucleotide (or oligo) CMO leaping 46.6% y-y to KRW132b on greater production of hyperlipidemia drug; 2) generic CMO climbing 2.4% y-y to KRW32b; 3) fine chemicals rising 3.9% y-y to KRW31.5b (up 3.9% y-y); and 4) mRNA CDMO starting at KRW19.7b.