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| A researcher is seen working on GC Pharma's COVID-19 plasma therapy development at the company's Ochang plant in Cheongju, North Chungcheong Province. Courtesy of GC Pharma |
By Kim Bo-eun
Brokerages slashed GC Pharma's target stock price, Friday, after the company stated a day earlier that talks with Johnson & Johnson regarding the contract manufacturing of the Janssen COVID-19 vaccine had been suspended.
GC Pharma implied in three filings since August that it had been in discussion with J&J for the possible contract manufacturing of the Janssen COVID-19 vaccine.
Daishin Securities and Kiwoom Securities lowered their target price for GC Pharma's stock to 300,000 won and 290,000 won, respectively. GC Pharma's stock closed at 237,000 won, Friday, up 0.85 percent from the previous day's close.
Analysts stated that the adjusted prices exclude the value of the company's contract manufacturing organization (CMO) business, given uncertainties over the CMO contract with Johnson & Johnson.
Daishin Securities maintained its "buy" view, stating that possibilities for a CMO contract still exist, and also referred to expanded use of Moderna's COVID-19 vaccine here, as well as the sharp growth of exports of GC Pharma's Hunter syndrome treatment, Hunterase. GC Pharma is in charge of retail for the Moderna vaccine here.
GC Pharma did not specify the reason for why the talks fell through, but analysts attributed it to weak sales of the Janssen vaccine this year.
The Janssen vaccine's sales are expected to come to 3 trillion won ($2.54 billion) this year, which is significantly less than the sales projections of the Pfizer and Moderna vaccines, at 42 trillion won and 21 trillion won, respectively.
