[Edaily Reporter KIM JI-WAN ] Yuhan(000100)Forecasts indicate that the company will continue to see improved earnings, driven by increased royalties from its new lung cancer drug, Razcluz. The potential technology transfer of the allergy treatment YH35324 was also assessed as a factor that could boost the company’s corporate value in the medium to long term.

IBK Investment & Securities released a report on the 16th titled “Yuhan Corporation: The Season of Harvest Is Approaching,” presenting this analysis.

Yuhan Corporation’s consolidated revenue for the third quarter of this year is estimated at 612.6 billion won, up 7.5% year-over-year, while operating profit is estimated at 33.2 billion won, a 50.8% increase. The operating profit margin is projected to be 5.4%, in line with market expectations.

The key driver of this earnings improvement is the Razcluz royalty.

Net sales from the combination therapy of Razcluz (Lecraza) and Librivant (Amivantamab) in the third quarter reached $320 million (426.2 billion won), a 62.3% increase year-over-year. Accordingly, the royalties Yuhan receives from Razcluz are estimated at 9.1 billion won, up 30% from the previous quarter. When combined with the 2 billion won in royalties from subsidiary Adpharma’s improved new drug, consolidated royalty revenue is expected to reach 11.1 billion won.

In particular, the expanded availability of the subcutaneous (SC) formulation of Librivant is cited as an additional growth driver. Since July, the application of the U.S. insurance billing code “J-code” has streamlined the prescription and insurance billing processes.

Jeong Yi-su, an analyst at IBK Investment & Securities, stated, “Compared to the existing IV (intravenous) formulation, it is easier to administer and has a lower incidence of injection-related reactions, reducing the burden on patients; we expect this to drive an increase in prescriptions.”

Attention is also focused on the next-generation pipeline candidate, YH35324. A global Phase 2 clinical trial is currently underway for this treatment for chronic spontaneous urticaria, and key clinical data is expected to be available in the second half of 2027. IBK Investment & Securities assessed that the drug has potential for technology transfer, considering its expandable indications and the possibility of combination therapy with existing treatments.

Research Analyst Jeong emphasized, “We are focusing on the growth of Razcluz royalties and the potential for technology transfer of the allergy treatment YH35324.”

IBK Investment & Securities changed its target price calculation method to the Sum-of-the-Parts (SOTP) approach. This reflects a business value of 2.621 trillion won for the pharmaceutical and Contract Development and Manufacturing Organization (CDMO) segments, a value of 4.026 trillion won for Razcluz royalties, and a value of 576 billion won for YH35324, among other factors.

Yuhan Corporation’s annual operating profit is projected to increase from 141 billion won this year to 215 billion won in 2027 and 283 billion won in 2028. Accordingly, the operating profit margin is expected to improve from 6.0% this year to 9.6% in 2028.

On the same day, IBK Investment & Securities maintained its “Buy” rating on Yuhan but lowered its target price from 160,000 won to 110,000 won. However, the firm analyzed that the stock still has upside potential of 44% compared to its closing price of 76,400 won on the 15th.