Drug maker SynCore Biotechnology Co (杏國) is likely to swing into the black in 2020 after it launches its new drug for treating triple-negative breast cancer, Jih Sun Securities Investment Consulting Co (日盛投顧) said.
The company’s breast cancer drug SB05 (Endo-TAG 1), which it acquired from German-based MediGene AG last year, is currently under phase three clinical trials in Belgium and might enter phase three clinical trials in Australia soon, Jih Sun Securities analyst Chang Li-chun (張立群) said in a report issued on Friday.
SynCore purchased a 6.09 percent stake in the German company for NT$94 million (US$3.1 million) on May 27 last year.
Chang said the drug would likely hit the market in 2019 and start generating revenue for SynCore in the following year, according to the report.
He forecast sales of the drug would gradually pick up and reach its peak sales of US$512 million in 2024, with SynCore likely receiving 41 percent of the sales as royalties starting in 2020 at NT$61.5 billion.
Global sales for drugs for treating breast cancer are about US$11 billion a year, Chang said.
In addition, SynCore is developing SB04, a drug to treat dry age-related macular degeneration, and Jih Sun Securities estimated sales of the drug would be US$250 million a year in Asia starting 2021, when SynCore launches the drug.
Eyeing the potential sales of the two drugs, Jih Sun Securities rated the company’s shares at “buy.”
The stock is set to shift its listing to the GRETAI Securities Market from the Emerging Stock Market by the end of next month, through issuing 6.87 million new shares with prices tentatively set at between NT$80 and NT$100 per share, according to SynCore.
From January through last month, the company registered revenue of NT$3.13 million on sales of Veregen, a drug licensed from MediGene to treat genital warts caused by human papillomavirus. The company launched the drug in Taiwan in November last year.
In the first six months of this year, the company posted losses of NT$101 million, or NT$1.96 per share, compared with losses of NT$33.23 million, or NT$0.76 per share, the previous year due to higher expenses for research and development, according to the company’s filing to the Taiwan Stock Exchange.
SynCore plans to spend NT$1.05 billion from next year through 2018 to develop SB05 and spend another NT$700 million from this year through 2019 on SB04 research, Chang said.
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