DB Securities noted on the 2nd that PharmaResearch signed a distribution agreement worth about 880 billion won with a France-based aesthetics corporation, which may negatively impact the stock price in the short term, but its medium- to long-term appeal has actually strengthened. The investment opinion is 'buy' with a target price of 800,000 won. PharmaResearch's closing price the previous day was 659,000 won.
PharmaResearch signed a distribution agreement worth about 880 billion won for a period of five years on the 29th of last month with the France-based global aesthetics corporation Vivacy regarding Rejuran.
Kim Ji-eun, a researcher at DB Securities, explained regarding the scale of the contract, "There are evaluations that it has been somewhat conservatively estimated compared to market expectations, but it is necessary to consider that this is the initial entry stage."
The regions contracted by PharmaResearch include 22 countries, including major Western European countries such as the United Kingdom, Germany, France, Italy, and Spain. This area excludes the countries covered by existing Eastern and Northern European local distributors.
DB Securities understood that PharmaResearch is currently in discussions related to packaging and other pre-launch matters. It also estimated that if 880 billion won in European sales is assumed over five years, the sales in the year after the launch would be about 110 billion won.
Researcher Kim stated, "The European skin booster market is dominated by hyaluronic acid-based watery injections," adding, "Currently, within the hyaluronic acid-centered skin booster market, Rejuran, based on poly nucleotides (PN), is at the stage of pioneering new categories and starting penetration."
He considered it a positive signal that could drive category expansion in the global market and increase PharmaResearch's share of overseas sales.
Researcher Kim analyzed, "The scale of this distribution contract has been conservatively estimated compared to market expectations, which may impose a burden on investor sentiment and negatively affect the stock price in the short term," but added, "In the long term, the potential for export expansion to advanced markets and the acquisition of differentiated competitive advantages can strengthen medium- to long-term appeal."