Daily BriefsHealthcare

Daily Brief Health Care: Prodia, SK Biopharmaceuticals Co Ltd, Remegen Co Ltd, BNC Korea and more

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

By Angus Mackintosh

  • 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

By Tina Banerjee

  • 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

By Shawn Yang

  • 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

By Tina Banerjee

  • 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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