(Health Korea News / Chang-yong Lee) It is predicted that Daewoong Pharmaceutical’s expected operating profit in the fourth quarter of 2024 will increase significantly. This can be attributed to the growth of the reflux esophagitis treatment drug ‘Pexuclu’ and the botulinum toxin drug ‘Nabota’.
Kiwoom Securities predicted on the 15th that Daewoong Pharmaceutical’s sales and operating profit in the fourth quarter of 2024 (consolidated basis) will be KRW 365.4 billion and KRW 42.7 billion, respectively. This is an increase of 1% and 48.7%, respectively, compared to sales (KRW 319.6 billion) and operating profit (KRW 32.1 billion) in the fourth quarter of 2023.
‘Pexuclu’ sales in the fourth quarter of 2024 are expected to be 24.6 billion won, a 50.6% increase compared to the same period in 2023. Looking at the monthly sales trend since the collaboration agreement with Chong Kun Dang, it is rapidly growing by 1 billion won each quarter to 6 billion won in the second quarter of 2024, 7 billion won in the third quarter, and 8 billion won in the fourth quarter. Kiwoom Securities announced that this trend is expected to remain in effect this year as well.
In the case of ‘Nabota’, sales in the fourth quarter of 2024 are expected to record 49.1 billion won, a 45.7% increase compared to the third quarter of 2023. Domestic sales are expected to drop 26.1% compared to the same period in 2023 to 7.3 billion won, but exports are expected to surge 75.7% to 41.8 billion won.
Sales of the new diabetes treatment drug ‘Enblow’ in the fourth quarter of 2024 are estimated at 3.1 billion won. This is a 41.9% increase compared to the same period in 2023.
Kiwoom Securities analyst Shin Min-soo said in relation to Enblo, “Because it is a new drug developed independently as a replacement for ‘Forxiga,’ it is a product that can greatly help improve profit margins as the sales portion increases.” He added, “In the case of ‘Fexuclu,’ collaboration is possible.” “If we have increased the scale through this, we have a goal of concentrating the sales force on ‘Enblo’ to increase the sales volume to 20 billion won by 2025,” he said.
Analyst Shin said, “The proportion of products in the ETC division is continuously increasing, and the trend of profit margin improvement has gained momentum through efficient cost execution in the fourth quarter of 2024,” adding, “The signing of a contract with a Chinese partner for ‘Nabota’ in 2025 and the He expressed optimism that mid- to long-term corporate expansion will continue smoothly, including the momentum of obtaining approval for ‘Pexuclu’ and the full-scale operation of the toxin plant 3 to be followed by the end of 2026.”
At the same time, the target stock price was presented at 180,000 won, a 5.9% increase from the previous 170,000 won, and the investment opinion was maintained at ‘BUY’.
Meanwhile, Analyst Shin presented Daewoong Pharmaceutical’s sales and operating profit this year as KRW 1.5338 trillion and KRW 174 billion, respectively. This is an increase of 8.0% and 14.5% compared to the expected performance in 2024 (sales: KRW 1.4202 trillion, operating profit: KRW 151.9 billion).
In relation to this, analyst Shin said, “As Evolus, our toxin partner, will begin full-scale filler sales in the U.S. starting in 2025, we expect a synergy effect between cosmetic injectable formulations.” He added, “This effect is expected to be “As sales of the American brand name ‘Jeuveau’ continue to grow, annual ‘Nabota’ exports will reach 207.3 billion won in 2025,” he predicted.
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