DongA ST, Subsidiary MASH and Obesity Drug Clinical Results Expected This Year
"Improved Performance Expected in the Second Half of the Year"
On the 12th, Seo Geunhee, a researcher at Samsung Securities, stated, "DongA ST holds R&D momentum with the phase 2 clinical results of its subsidiary NeuroBo's ‘DA-1241’ and the phase 1 announcement of ‘DA-1726’ in the second half of this year." He maintained a buy recommendation for DongA ST with a target stock price of 100,000 KRW (approximately 75 USD).
DA-1241 and DA-1726 are candidate substances developed by DongA ST’s subsidiary, NeuroBo, for the treatment of Metabolic Associated Steatohepatitis (MASH) and obesity, respectively. These clinical trials are being conducted in the United States.
Researcher Seo predicts, "The results of the phase 2a clinical trial of DA-1241 are expected to be announced in the third quarter," and added, "The competitive edge can be confirmed through indirect comparison with existing GLP-1 (glucagon-like peptide-1) agents based on the primary indicator of ALT (alanine aminotransferase) changes."
He continued, "The phase 1 clinical results of DA-1726 are also scheduled to be announced in the third quarter, with the primary focus on safety verification. However, pharmacokinetics (absorption, distribution, metabolism) in severe obesity patients can also be confirmed." He noted, "Boehringer Ingelheim's survodutide, which operates on the same mechanism (mode of action), demonstrated a 15% weight reduction effect with 46 weeks of administration."
DongA ST's second-quarter sales are expected to be similar to the same period last year. Standalone sales are projected to increase by 1.4% year-on-year to 156.3 billion KRW (approximately 118.4 million USD), while operating profit is expected to decrease by 32.7% to 5.9 billion KRW (approximately 4.5 million USD).
Researcher Seo commented, "With sales of 28 billion KRW (approximately 21.2 million USD) for growth hormone Growtropin, which increased by 34% year-on-year, the expected sales of the prescription drug division are forecast to grow by 7.3% to 109.9 billion KRW (approximately 83.3 million USD). The recovery trend, free from the impact of medical strikes, is evident." He further stated, "Although exports are expected to decline due to base effects, performance is anticipated to improve in the second half of the year with the increase in Bacchus exports and the European launch of the 'Stelara' biosimilar 'DMB-3115'."
The company is also awaiting the approval of DMB-3115 in the U.S. and Europe in the fourth quarter. Upon approval, they plan to launch the product in Europe around December. In the U.S., following an agreement with the original company, Johnson & Johnson, the launch is scheduled for February next year.