Bioinformation analysis is Yoon Seok-yeols digital health care theme?
Report without target price, BUY rating, or earnings estimate
Remdesivir 600-fold approved, failed to prove efficacy
The current stock price and target price are half the pull-up gap rate 100% [Edaily Kim Yu-rim] Securities companies bio reports do not provide performance estimates for stocks, but they are tied to politics and Corona 19 theme stocks, and the stock price is showing a sharp rise. There are criticisms that the securities company report, which must provide objective information, is contributing to the creation of theme stocks.
“Yoon Seok-Yeol Healthcare, Digital Healthcare”
Hana Kang, a researcher at eBest Investment & Securities,s Genius Report. On the 14th, Hana Kang, a researcher at eBest Investment & Securities, published a report on Geninus. Researcher Kang emphasized that if President-elect Yoon Seok-yeols digital healthcare promise is implemented, Geninus, a company specializing in bioinformatics analysis, will benefit greatly.
He said, “President-elect Yoon Seok-yeol mentioned that he would foster bio-health care as one of the five major mega-tech fields, and said that he would actively foster the digital medical industry in the high-tech medical field. We will also strive to innovate the medical system for integrated genetic control technology and digital medical education.” He said, “We will also introduce a system for managing personal medical data and digital health care services, which is a unique way for cancer patient data that has passed the IRB. It is a very advantageous system for Geniuses, who own a lot and have a solid infrastructure due to the spin-off of a large hospital.”
After the report was published, the share price of Geninus has risen 10% over the past week, showing strength. In particular, on the 17th, it soared more than 7% in just one day, and there was even an article featuring the benefit of Yoon Seok-yeols policy.
However, the industry analyzes that President-elect Yoon Seok-yeols promise for digital health care is far from the main business of Geninus. A bio industry official, who requested anonymity, said, “The key to Yoon Seok-yeol’s digital health care is telemedicine. On the other hand, Geninus NGS is a technology that analyzes each cell in tissue or blood to find out its characteristics. When making customized anticancer drugs and customized vaccines, it is used to prescribe anticancer drugs that are more responsive to patients by analyzing cells. “Right now, its too expensive and theres little demand, and I dont know what NGS has to do with telemedicine.”
In the special report of the ‘20th Presidential Election Results and Major Promises’ by the Sejong Presidential TF Team, a law firm, the telemedicine business was analyzed as the focal point of the new government’s promise of digital health care. A Sejong official said, “It is expected that plans to expand personal medical data and digital health care service management and non-face-to-face treatment pilot projects in islands and mountainous regions will be promoted.”
What is more problematic is that although researcher Kang Seok-yeol said that Geninus was re-evaluated due to the strengthening of digital healthcare policy by Yoon Seok-yeol, he did not provide an estimate of earnings. It also did not provide a target price and investment opinion. This does not evaluate the appropriate value of the relevant stock, which is in conflict with the policy of the Financial Supervisory Service to increase the credibility of the report.
“600-fold effect of remdesivir, approval is expected”
Chong Kun Dang report by Oh Byeong-yong, a researcher at Hanyang Securities. Thanks to a report from a securities company, the stock price soared as it became a Corona 19 theme stock, but in the end, it failed to prove its effectiveness. On March 15, last year, Byeong-yong Oh, a researcher at Hanyang Securities, published a report by Chong Kun Dang under the title, “Corona 19 treatment, 600 times stronger.” With a target price of 198,000 won, the investment recommendation is BUY.
Researcher Oh said, “We should pay attention to ‘Nafamostat,’ which Chong Kun Dang is developing as a treatment for COVID-19. ‘Nafamostat’ is a drug that is highly anticipated by the Institut Pasteur Korea, which announced that it is 600 times more effective than remdesivir at the cellular level. Marketing approval for a treatment for COVID-19 could act as a significant momentum in the stock market. There are so many candidates for the treatment of COVID-19, but one of the most promising substances is nafamostat. The comparable drug, remdesivir, is expected to reach $3 billion in sales in 2021.”
After the report was published, the stock price of Chong Kun Dang soared by 23%. However, after the market close on March 17, last year, two days after the report was published, news of the failure to prove the effectiveness of Napabeltan was reported. There was no difference in the clinical improvement time, which is the main evaluation index of efficacy, at 11 days in both the test group and the control group. There was no difference between the test group and the control group in the time for the additionally evaluated virus test result to change from positive to negative.
The stock price of Chong Kun Dang, which had surged under the theme of approval for a treatment for COVID-19, followed a downward trend. The current share price is hovering around Rs. This diverges from the target price suggested by Researcher Oh by 100%. Napabeltan, which Researcher Oh predicted for approval in April 2021, is still in phase 3 clinical trial after a year has passed, and patient recruitment has not been completed.
A researcher at a securities company said, “The evaluation of analysts at securities companies is not influenced by the writing of reports that provide objective and accurate information,” said a researcher at a securities company. The fact of receiving Also, since biotechnology is such a specialized field, it is also difficult for the internal supervisory department to comment on the report,” he pointed out.