Daewoong Pharma shares soar after FDA approval
Shares of Daewoong Pharmaceutical have been rallying since the company announced on Jan. 1 that its botulinum toxin Nabota received marketing authorization from the US Food and Drug Administration.
Korea’s leading drug maker and its US partner Evolus plan to start selling Nabota under the name Jeuveau in the US from March.
“Nabota can now be exported to countries including the US, Europe and Canada. As a result, Daewoong’s royalty revenue is expected to increase 13 percent and 22.1 percent this year and next year respectively,” said Korea Investment & Securities in a report.
On Feb. 7, Daewoong Pharmaceutical’s shares jumped 5.7 percent to 204,000 won (US$181.51). Its shares increased further the next day, closing at 206,000 won.
Expectations are rising for the performance of Nabota, which is seen as having a strong price advantage over rivals such as Botox, Dysport and Xeomin.
Nabota is also the first Korean botulinum toxin to receive the FDA’s approval in the US, where the related market is estimated to be worth around 2 trillion won, with the annual growth rate at an average of 9 percent.
Shares of Daewoong Pharmaceutical’s holding company Daewoong, which holds the rights to Nabota, also rose 6.10 percent on Feb. 7 to 20,000 won. On Feb. 8, prices edged down to 19,950 won.
However, the pharmaceutical company still faces hurdles amid allegations that it developed Nabota with stolen information.
At the end of January, Allergan and its Korean partner Medytox filed a complaint with the International Trade Commission in Washington to stop Nabota imports, claiming that manufacturing secrets to develop botulinum toxin were stolen by its former employees.
By Song Seung-hyun (firstname.lastname@example.org)