[E-Daily Reporter Shin Ha-yeon ] On the 16th, IBK Investment & Securities assessed that investors should focus on the increasing royalty revenue from Razcluz, a non-small cell lung cancer treatment, and the potential for technology transfer of its allergy treatment, regarding Yuhan(000100). The firm projected that third-quarter earnings would meet market expectations. While maintaining a “Buy” rating, it lowered the target price from 160,000 won to 110,000 won due to a change in its enterprise value calculation method.

Jeong Yi-su, an analyst at IBK Investment & Securities, stated in a report released today, “We are focusing on the growth of Razcluz royalties and the potential for technology transfer of the allergy treatment YH35324.”

IBK Investment & Securities estimated Yuhan Corporation’s third-quarter consolidated revenue at 612.6 billion won, a 7.5% increase year-over-year, and operating profit at 33.2 billion won, up 50.8%. The operating profit margin is expected to be 5.4%. These figures are generally in line with the market consensus of 608.2 billion won in revenue and 32.5 billion won in operating profit.

By business division, the firm projected that the Pharmaceuticals Division would continue to show stable growth. Third-quarter revenue for the Pharmaceuticals Division is estimated at 381.9 billion won, a 6.8% increase year-over-year. The Consumer Goods and Distribution Division is also expected to contribute to overall growth, recording revenue of 61.7 billion won—an 18.2% increase—driven by the low base effect from last year.

In particular, increased royalty revenue from the new lung cancer drug Razcluz is expected to support the improvement in earnings. The combination therapy of Razcluz and Johnson & Johnson’s (J&J) Libravant continues to show sales growth in the global market.

Analyst Jeong explained, “Net sales for the third-quarter combination therapy of Razcluz and Librivant, used to treat non-small cell lung cancer, reached $320 million, a 62.3% increase year-over-year,” adding, “We estimate Razcluz royalties at 9.1 billion won, a 30% increase from the previous quarter.”

With the addition of 2 billion won in royalties from subsidiary Adpharma’s improved new drug, total consolidated royalty revenue for the third quarter is expected to reach 11.1 billion won.

The company projected that Razcluz’s growth momentum would continue in the future. In particular, it expected the subcutaneous (SC) formulation of Librivant—a combination therapy—to drive an expansion in prescriptions.

The Librivant SC formulation has seen its billing process simplified since July of this year, when the U.S. insurance billing code (J-code) was applied. It is explained that, compared to the existing intravenous (IV) formulation, it is easier to administer and has a lower incidence of infusion-related reactions, thereby reducing the burden on patients and healthcare providers.

Researcher Jeong stated, “The Librivant SC formulation has had its billing procedures streamlined since the insurance billing code was applied in July 2026,” adding, “As it is easier to administer than the existing intravenous (IV) formulation and has a lower incidence of infusion-related reactions—thereby reducing the burden of administration—we expect it to drive an increase in prescriptions.”

Among the company’s new drug pipeline, attention was drawn to the allergy treatment candidate YH35324. YH35324 is currently undergoing a global Phase 2 clinical trial in patients with chronic spontaneous urticaria.

This trial involves 150 patients whose symptoms are not adequately controlled by existing second-generation H1 antihistamines. It also includes patients who have previously been treated with omalizumab.

Patients will receive the drug via subcutaneous injection three times at four-week intervals, followed by a 12-week treatment period and a 4-week follow-up period. The primary endpoint of the trial is the change in the Weekly Urticaria Activity Score (UAS7) at the 12-week mark.

The primary evaluation is scheduled to be completed in June 2027, and the entire clinical trial is expected to conclude in July of the same year. Accordingly, key clinical results are expected to be available in the second half of next year.

Researcher Jeong explained, “YH35324 is currently undergoing a global Phase 2 clinical trial for chronic spontaneous urticaria, and data is expected to be available in the second half of 2027.”

He added, “We are conducting clinical trials for allergic diseases with significant potential for indication expansion, and since there is also potential for combination therapy with existing drugs, we anticipate technology transfer.”

IBK Investment & Securities estimated the new drug value of YH35324 at approximately 576 billion won. This figure reflects the size of the global allergy treatment market and the potential for future market share expansion, and is based on a 20% probability of successful new drug development and a 50% attribution rate to Yuhan.

The firm also forecast continued medium- to long-term earnings growth. IBK Investment & Securities projected that Yuhan Corporation’s consolidated revenue this year would reach 2.358 trillion won, a 7.8% increase year-over-year, while operating profit would rise 34.7% to 141 billion won.

For next year, the firm estimated revenue of 2.624 trillion won and operating profit of 215 billion won, representing increases of 11.3% and 53.0%, respectively. By 2028, revenue is projected to reach 2.948 trillion won, with operating profit at 283 billion won.

Improved profitability is also expected. The operating profit margin, projected at 6.0% this year, is estimated to rise to 8.2% next year and 9.6% by 2028.

However, the target stock price was lowered by 31.3% from the previous 160,000 won to 110,000 won. The firm applied the SOTP (Sum-of-the-Parts) method—which aggregates the values of individual business units—for the first time in calculating this target price.

Analyst Jeong explained, “By switching to the SOTP method for calculating the target price, we combined the business value of the pharmaceutical and Contract Development and Manufacturing Organization (CDMO) segments—estimated at 2.6 trillion won—with the value of Razcluz royalties—estimated at 4 trillion won—and the value of the new drug YH35324—estimated at 576 billion won.”

Specifically, the value of the pharmaceutical and CDMO businesses was calculated at approximately 2.621 trillion won by applying a multiple of 15 to the projected 2028 earnings before interest, taxes, depreciation, and amortization (EBITDA). The value of the Razcluz royalties was assessed at approximately 4.0026 trillion won by applying a multiple of 35 to the projected royalty revenue.

In addition, by factoring in the value of the company’s equity holdings—approximately 870 billion won—and the value of the new drug YH35324, the total enterprise value was estimated at approximately 8.184 trillion won.

Although the target price has been lowered, analysts assess that there is still significant upside potential relative to the current stock price. Compared to the closing price of 76,400 won on the 15th, the new target price of 110,000 won represents an upside potential of approximately 44.0%.

Analyst Jeong identified the growth in Rajcluz royalties and the potential for technology transfer of YH35324 as key factors for a future revaluation of the company’s enterprise value.