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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] On the 28th, DS Investment Securities raised its target price for GC Biopharma (GC녹십자) from KRW 140,000 to KRW 185,000, citing the growth of new revenue streams and an expected turnaround in the coming year. The firm maintained its “Buy” rating on the stock.
Key Growth Drivers for GC Biopharma:
Explosive Demand for "Aliglo" in the U.S.
Aliglo, a blood product by GC Biopharma, has seen explosive demand in the U.S. However, the company has not yet secured adequate blood donor centers to meet this demand.
If GC Biopharma acquires blood centers in the first half of next year, analysts believe the company can immediately raise sales projections for Aliglo.
New Vaccines and High-Margin Products
GC Biopharma’s anthrax vaccine, co-developed with the government, is expected to receive approval by the end of this year, while the BCG vaccine is anticipated to be approved by early next year.
Both the Hunterase (Hunter syndrome treatment) and the new vaccines are high-margin products, expected to significantly contribute to profitability improvement in 2024.
Recovery of "Hunterase" Sales
Hunterase sales, which declined last year due to the Ukraine war and Egypt's currency crisis, have started to normalize in the third quarter of this year. This recovery is expected to support the company’s overall growth.
Outlook for 2024
With the growth of Aliglo, the normalization of Hunterase sales, and the upcoming launch of high-margin vaccines, GC Biopharma is poised for a strong turnaround in 2024. The target price upgrade reflects the positive outlook for the company, suggesting substantial upside potential.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
