Ilyang Pharmaceutical (007570 KS): Leukemia Drug Commercialization Concerns Still Persist

122 Views02 Nov 2021 20:55

SUMMARY

Ilyang Pharmaceutical Co., (007570 KS) shares touched new high of KRW 84,300 in December 2020 after its self-developed innovative drug Supect received approval for clinical trial for potential label expansion. However, Supect failed to prove efficacy in another clinical trial for COVID-19 in March 2021 and since then shares are declining. Ilyang shares are now trading near 52-week low.
Ilyang’s flagship drug Noltec is the leading anti-ulcer drug in Korea due to its superior efficacy and convenience of administration. Noltec is further expected to gain market share driven by its label expansion.
While Noltec has been enjoying steady revenue growth since its launch in 2009, Ilyang’s aspiration to become a leading global pharmaceutical company is dependent on the long-term commercialization success of its leukemia drug Supect and its label expansion potential.
Last week’s FDA approval of a new class of leukemia drug from Novartis AG (NOVN SW) has further increased competition in the already crowded leukemia space. This insight has mainly analyzed concerns over the commercialization of Supect amidst this competitive backdrop to find whether Ilyang can be a good bargain hunting idea for investors.

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