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[Alpha Biz= Ellie Kim] Kiwoom Securities has upgraded GC Biopharma (Green Cross) to “Buy” from “Outperform” and raised its target price to KRW 210,000 from KRW 180,000, citing improved valuation prospects following the sale of its U.S.-based affiliate.
Eli Lilly announced on May 26 that it will acquire vaccine biotech Curevo for up to USD 1.5 billion (approximately KRW 2.3 trillion). Kiwoom Securities noted that the deal will provide GC Biopharma with not only upfront cash proceeds but also future milestone payments, contract manufacturing opportunities (CMO), and sales-based royalties.
The brokerage expects an immediate cash inflow of approximately KRW 300 billion as early as the third quarter, while emphasizing that the agreement establishes a long-term revenue structure rather than a one-off gain.
Curevo’s lead shingles vaccine candidate, Amezosvatein, is believed to have driven the acquisition. Clinical data indicate comparable efficacy to GSK’s Shingrix, the current market leader, with significantly fewer side effects.
Kiwoom Securities said successful commercialization of the vaccine could position it as a new cash cow for GC Biopharma. The anticipated cash inflow is expected to support facility expansion, debt repayment, and increased R&D investment, creating a positive financial cycle.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
