Yuhan Corporation Sees Hope for Technology Transfers as CDMO Business Grows, Entering a Virtuous Cycle - ARIS

[Financial News] Yuhan Corporation is securing a mid- to long-term growth engine as expectations rise for new drug technology transfers alongside the growth of its high-margin CDMO business. However, no investment rating or target price was provided.
Woo Chae-yeon, a researcher at ARIS, said, "Yuhan Corporation has entered a virtuous cycle in which the results of its new drug pipeline are adding to the steady growth of its core business."
Yuhan Corporation is expanding its CDMO business around its subsidiary Yuhan Chemical. It secured contracts worth a total of 576 billion won with Gilead Sciences and signed another 56 billion won deal with Bridge Biopharma. The CDMO business has grown at an average annual rate of 26.7% over the past three years.
Woo said, "As the U.S. stance of decoupling from China deepens, more companies are shifting contract manufacturing to domestic firms." He added, "Yuhan Corporation has strengths in small-molecule active pharmaceutical ingredients, so additional orders are likely."
In the new drug segment, the report highlighted the growth of Lekrza and the potential for technology transfer of the allergy treatment Lesigercept. Lesigercept is scheduled to complete Phase 2 trials at the end of 2027, which could become a key momentum factor in future licensing talks with global big pharma.
Woo estimated Yuhan Corporation's 2026 sales and operating profit at 2.321 trillion won and 118.4 billion won, respectively. However, he noted risks, including a time lag before Lekrza's global prescription data is reflected in earnings and uncertainty over the timing of any technology transfer for Lesigercept.
[email protected] Kang Jung-mo Reporter