Brokerage : Daishin Securities
Analyst : Kahye Hong (RA: Cherry Lee)
Investment Rating : BUY (Maintained)
Target Price : KRW 500,000 (Maintained)
Core Momentum : Favorable outcomes in key US patent proceedings significantly ease IP risks, while discussions with 10+ potential partners under MTAs and surging Keytruda SC sales accelerate recognition of the remaining USD 1 Billion in sales milestones.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / 6-Month Target Price KRW 500,000 (Maintained) (Upside potential of +37% based on the June 1, 2026 closing price of KRW 366,000)
- Valuation Methodology: Derived via rNPV DCF valuation. Patent risk mitigation and accelerated Keytruda SC adoption are consistent with baseline assumptions, with upside potential if new deal sizes exceed assumptions or commercialized asset proportions expand.
- Market Data: KOSDAQ Index 1,050.03pt / Market Cap KRW 19.61 Trillion (Weight 2.91%) / Capital Stock (Common) KRW 27.0 Billion / 52-Week High KRW 559,000, Low KRW 325,000 / 120-Day Average Trading Value KRW 245.4 Billion / Foreign Ownership 14.51% / Major Shareholders: Soonjae Park and 4 affiliates 20.33%, Inwoo Hyung and 2 affiliates 5.08%
- Annual Financial Forecast (Daishin Securities Estimates):
- 2026F: Revenue KRW 454.0 Billion, Operating Profit KRW 295.0 Billion, Pre-tax Profit KRW 358.0 Billion, Net Profit (Controlling) KRW 270.0 Billion, EPS KRW 5,000, BPS KRW 12,878, PER 73.8x, PBR 28.4x, ROE 47.3%
- 2027F: Revenue KRW 513.0 Billion, Operating Profit KRW 344.0 Billion, Pre-tax Profit KRW 408.0 Billion, Net Profit (Controlling) KRW 308.0 Billion, EPS KRW 5,700, BPS KRW 18,206, PER 64.7x, PBR 20.1x, ROE 36.7%
- 2028F: Revenue KRW 632.0 Billion, Operating Profit KRW 448.0 Billion, Pre-tax Profit KRW 513.0 Billion, Net Profit (Controlling) KRW 387.0 Billion, EPS KRW 7,168, BPS KRW 25,006, PER 51.5x, PBR 14.6x, ROE 33.2%
🚀 2. [Market Opportunities & Business Outlook]
- Key US Patent Risks Significantly Eased:
- The US Patent Trial and Appeal Board (PTAB) ruled in favor of MSD’s post-grant review (PGR), determining Halozyme’s core ‘600 patent unpatentable on May 12.
- The USPTO denied institution of Halozyme’s inter partes review (IPR) against Alteogen’s manufacturing process patent on May 15, concluding both proceedings favorably and significantly reducing key US IP risks.
- New Licensing Catalysts & Modality Diversification:
- Following deals with GSK and Biogen earlier this year, discussions based on Material Transfer Agreements (MTAs) are progressing with over 10 potential partners, supporting expectations for additional deal closures within 2026.
- Recent transaction terms track at ~USD 300 Million per asset with mid-single digit royalties (GSK USD 285M/1 product, Biogen USD 579M/2 products), extending across mAbs, bispecifics, and ADCs.
- Keytruda SC Commercial Adoption & Clinical Pipelines:
- Keytruda SC (Qlex) posted Q1 revenue of USD 128 Million; April prescription sales reached USD 88 Million (MoM +76%) post-J-code implementation, demonstrating faster conversion than Opdivo SC (4.1% vs 2.8%).
- Recognition of the remaining USD 1 Billion in commercial sales milestones from MSD will begin in Q2 2026, distributed over the next 3–4 years.
- Clinical catalysts include Phase 3 initiation in H2 for the high-dose Dupixent SC candidate (targeting 2029 launch), Enhertu SC Phase 1 Part 1 readout in mid-June, and ALT-P1 Phase 2 topline data in H2.
📝 Editor’s Comment (Perspective)
The analyst views Alteogen as a globally validated subcutaneous drug delivery platform that has significantly reduced key US IP risks through successive favorable patent rulings while entering a recurring cash-flow generation phase as the remaining USD 1 Billion in Keytruda SC sales milestones begins recognition in Q2. The overarching perspective prioritizes the strong licensing pipeline (10+ active partner negotiations) and medium-term blockbuster commercializations (including Dupixent SC and Enhertu SC) over transient sentiment fluctuations in the biotech sector.
To verify whether this investment thesis progresses as expected, investors should primarily monitor remaining patent dispute outcomes, actual quarterly milestone recognition starting from Q2 2026 earnings, the execution of new definitive out-licensing contracts from current MTA negotiations within the year, the presentation of Enhertu SC Phase 1 results in June, and the formal initiation of Dupixent SC Phase 3 trials in H2. These developments can be verified through upcoming quarterly earnings releases, official company IR presentations, and regulatory filings on DART/KRX.
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