"SK Biopharm's Epilepsy Drug Excels in the U.S."... Growth Expected in the Second Half

SK Biopharm is expected to continue its performance growth in the second half of the year, driven by the stable sales growth of its epilepsy treatment, Cenobamate (marketed in the U.S. as Xcopri).

Analyst Ha Tae-ki of Sang Sangin Securities commented, "Cenobamate has entered a phase where operating profits are starting to increase significantly. SK Biopharm presents both short-term performance improvements and a vision for future growth, providing ample potential for stock price increases in the second half of the year."

SK Biopharm's consolidated sales for the second quarter of this year are estimated to have grown by 87.5% year-on-year to KRW 120 billion (approx. USD 90 million). Of this, U.S. sales of Cenobamate are estimated at about KRW 99 billion (approx. USD 74 million), accounting for about 82.5% of total sales, showing a 56.2% year-on-year increase.

Cenobamate is an epilepsy treatment developed by SK Biopharm. It works by blocking the sodium pathways that transmit excitatory signals in the brain, normalizing overexcited nerve cells. Since its launch in June 2020, Cenobamate has recorded continuous sales growth for 15 consecutive quarters.

Analyst Ha noted that the sales increase in the second quarter was significantly influenced by a roughly 6% price hike earlier this year, but actual prescriptions have also expanded. As of March this year, 47 months post-launch, the total number of prescriptions (TRx) for Cenobamate reached approximately 27,400. This is about 2.3 times higher than the average number of prescriptions for three competing drugs and ranks second in the market in terms of total cumulative prescriptions.

To secure additional growth momentum for Cenobamate, SK Biopharm is expanding its indications. Currently, Cenobamate is approved only for partial-onset seizures, which affect 30-40% of all epilepsy patients. The company plans to apply for additional approvals next year after completing Phase 3 clinical trials for epilepsy patients with primary generalized tonic-clonic (PGTC) seizures and pediatric patients.

Analyst Ha also observed that SK Biopharm is presenting new growth strategies for the mid-to-long term. "It appears that SK Biopharm will introduce new central nervous system (CNS) treatments as their next main products," he said. "These new drugs are expected to launch quickly using the U.S. sales network established with Cenobamate." He added, "Licensing agreements for these related products are anticipated to be signed as early as this year, or by next year at the latest."

Sang Sangin Securities stated, "From the mid to late second half of the year, SK Biopharm's stock is likely to level up, reflecting the growth in operating performance," and maintained a buy rating with a target price of KRW 130,000 (approx. USD 98).