- ST Pharm on Nov 24 announced its new capacity expansion plans. Its oligonucleotide (oligo) CMO capacity is set to rise from 1.8 mol (as of Nov 2021) to 6.4 mol in 2022 and to 14 mol in 2025.
- Rumors are circulating that the firm produces Novartis’ Leqvio. FDA approval of the oligo drug in 2022 would lead to ST Pharm’s cGMP production facilities gaining a track record, likely leading to more oligo CMO orders.
- As the CMO is expanding capacity to keep up with growing oligo manufacturing demand, and further as its utilization should rise with time, we raise our 12-month target price to KRW140,000 and reiterate BUY.
- Rumors are circulating that the firm produces Novartis’ Leqvio. FDA approval of the oligo drug in 2022 would lead to ST Pharm’s cGMP production facilities gaining a track record, likely leading to more oligo CMO orders.
- As the CMO is expanding capacity to keep up with growing oligo manufacturing demand, and further as its utilization should rise with time, we raise our 12-month target price to KRW140,000 and reiterate BUY.