A company seeking to cure Parkinson's disease.

Hanyang Securities Pharmaceutical/Bio Analyst Oh Byung-yong

[SbioMedics] The overwhelming potential to be revealed soon

Investment Opinion: N.R
Target stock price: -
Current stock price (03/29): KRW 11,720
Upside : -

A company seeking to cure Parkinson's disease.
Parkinson's disease is an incurable disease, and currently there are only symptom relief drugs and no therapeutic drugs. It is a huge untapped market with a global patient number of about 10 million and the prevalence rate is increasing rapidly. Sbiomedics is a company that has the potential to become a major player in this market. The company is developing a new drug called TED-A9 for the fundamental treatment of Parkinson's disease. The cause of Parkinson's disease is simple. It is caused by the death of dopamine-secreting neurons in the middle brain. TED-A9 of Sbiomedics is a treatment in which dopamine-secreting neurons produced by embryonic stem cells are transplanted into the middle brain of a patient. Theoretically, it is a method that can even be cured of Parkinson's disease. Currently, the company has already completed the administration of 12 clinical trials of TED-A9 in 1/2a and is waiting for the results.

Announcing the results of a clinical trial for Parkinson's disease from May. Full revaluation expected.
Similar to the company, a company that develops Parkinson's treatment with nerve cells is Bayer's subsidiary Bluerock therapy. BlueRock was acquired by Bayer for a whopping $1 billion (W1.3 trillion) in 2019. At that time, Bayer signed a down payment of a whopping $240 million (W320 billion) and a $360 million (W480 billion) milestone in exchange for the purchase of a 59.2% stake in BlueRock. More importantly, BlueRock was even before the start of the phase 1 clinical trial of Bemdaneprocell, a Parkinson's cell therapy. BlueRock recently succeeded in phase 1 clinical trial, and its current baseline value is estimated to have been much greater. BlueRock's clinical results have been reported in various media in Korea as a new treatment for Parkinson's. In BlueRock's phase 1 clinical trial, the MDS-UPDRS part III score decreased by -13 points at 12 months after the administration in the high-dose patient group (n=5). If SbioMedics's TED-A9 produces -13 points like BlueRock does in phase 1/2a clinical trial, its value is likely to skyrocket. In May, the company plans to release data on the 12th month of the administration of low-dose patients. The company's confidence in the results of the clinical trial is very high.

This is Hwang's realization. Undervalued compared to his overwhelming potential.
The company has a technology to make nerve cells from embryonic stem cells. The embryonic stem cells, which Dr. Hwang Woo-suk was studying 20 years ago, have infinite potential. The technology has become a reality and clinical trials are underway. Compared to adult stem cell companies, the technology can be seen as a new level of technology. The company is currently in phase 1/2a clinical trials to produce nerve cells and treat not only Parkinson's but also spinal cord injuries (such as quadriplegia due to trauma). Despite its overwhelming potential, its market capitalization (W130 billion) is still below that of ordinary stem cell therapy companies. When it went public on sale on May 4 last year, its initial offering price was W18,000. Currently, its stock price is only W11,750. Its undervalued charm stands out

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