SK Biopharm Introduces 1.1 Trillion Won Epilepsy Drug Technology; Construction Stocks Eye Dual Momentum from Nuclear Power & Reconstruction

SK Biopharm is primarily known for out-licensing (technology export), but this time it is attracting attention by actively introducing epilepsy new drug candidates and platform technology. The scale of the contract is also known to be significant, which is highly meaningful as it represents a new pipeline expansion following its existing epilepsy treatment, Xcopri.

Notably, SK Biopharm directly acquiring new drug candidates and platforms, rather than a big pharma company, is considered an unusual case in the domestic pharmaceutical and biotech industry and is expected to have a positive impact on future corporate value re-evaluation.

The construction sector is expected to diversify risks and secure additional growth engines through Middle East reconstruction issues, in addition to nuclear power projects. Major construction companies such as Hyundai E&C, Daewoo E&C, and GS E&C are simultaneously targeting nuclear power-related momentum and reconstruction business opportunities in the Middle East.

Recently, expectations for a ceasefire agreement between Iran and the US have created a positive atmosphere, with the Middle East reconstruction theme acting as a market catalyst. This positive sentiment is expected to contribute to construction stocks making a turnaround based on the dual momentum of nuclear power and reconstruction.

The semiconductor sector is generally marked by strong caution and a wait-and-see sentiment ahead of Nvidia's earnings announcement scheduled for tomorrow. This made it difficult for purchasing funds to flow into semiconductor-related stocks in today's market.

There have been instances of profit-taking (sell-on) after Nvidia's earnings announcements in the past, leading investors to adopt a cautious stance due to this learned behavior. However, volatility in the derivatives market is understood to have somewhat eased compared to the past.

The US Treasury is actively working to curb the rise in long-term bond yields. The Treasury Secretary has indicated a willingness to limit the upside of long-term bond yields through policy interventions, such as expanding buybacks. This is interpreted as a strong signal that the US government will not tolerate instability in the long-term bond market.

This move by the Treasury reinforces the view that growth stocks or technology stocks could actually present opportunities even in a high-interest rate environment. It is a time when a different approach to investment strategy is needed.

The US Treasury's policy of downward pressure on long-term bond yields and the progress of divesting trades (selling bonds and moving to alternative assets) could lead to short-term changes in sector selection for investment.

Moving away from the existing defensive investment strategy against a high-interest rate environment, it is now time to seek new opportunities due to downward pressure on interest rates. Analysis suggests that interest rate-sensitive sectors, such as the construction industry, which can benefit from interest rate cuts, may shift into a favorable short-term phase.

Disagreements over reactor type and leadership have emerged in the US nuclear power investment project between the United States and South Korea. The US plans to promote nuclear power reconstruction centered on its own reactor type, Westinghouse's AP1000, while leveraging South Korea's capital and construction capabilities.

Conversely, South Korea has a strategy to secure leadership by promoting its APR1400, raising the possibility of conflict. In this process, there is also potential noise that the role of Korea Hydro & Nuclear Power (KHNP) could be limited.

Even with disagreements over reactor types and leadership in nuclear power projects, it is analyzed that the construction companies directly building the nuclear plants will benefit regardless of which reactor type is adopted. For this reason, there is a tendency to prefer construction companies over equipment manufacturers.

In particular, large construction companies like Hyundai E&C are considered advantageous because their nuclear power construction capabilities, combined with Middle East reconstruction issues, allow them to diversify risks and secure additional growth engines.

The start of US-China 1.5-track dialogue is expected to lead to discussions on key issues. This could act as an important trigger for easing the macro environment.

Furthermore, with the return of US diplomatic personnel to the Middle East, expectations for an easing of the Iran situation are rising. This has reduced the possibility of physical conflict and even hints at the potential for easing restrictions on Russian and Iranian crude oil, which is expected to reduce overall market uncertainty.

As expectations for a relaxed macro environment grow, a change in investment sector selection strategy is deemed necessary. If the overall macro situation improves, high-growth sectors such as biotech, semiconductors, and AI infrastructure are expected to show strength.

Conversely, sectors less directly linked to the macro environment, such as cosmetics, may show relative weakness. Therefore, adjusting portfolio weight towards sectors that can benefit from macro easing can be a realistic strategy for investors.

BH is identified as a stock with re-rating potential due to its robot business diversification and anticipated benefits from the launch of Apple's foldable phone in the second half of the year. The company has established a key supply chain for Samsung Electronics' robot and humanoid businesses, and has secured cost competitiveness through integrated solution building with its subsidiary DKT.

This expansion of its robot business is expected to act as a new growth engine for BH. Additionally, the planned launch of Apple's foldable phone in the second half is expected to significantly contribute to BH's performance improvement in the third and fourth quarters. An increase in the supply of Apple-bound flexible printed circuit boards (RFPCB) is anticipated.

These factors are analyzed as major drivers that will diversify BH's revenue structure and lead to stable growth. Therefore, there are high expectations in the market for BH's future performance and corporate value appreciation.

SK Biopharm has strengthened its new drug pipeline by introducing the epilepsy drug 'Opacalm' and platform technology worth 1.1 trillion won (550 billion won upfront payment). This is interpreted as a strategy to mitigate the risk of dependence on its existing epilepsy treatment, Xcopri, as a single product, and to secure sustainable growth engines.

Opacalm is currently undergoing global Phase 2/3 clinical trials, making rapid commercialization highly likely. This technology introduction is expected to enhance SK Biopharm's new drug development capabilities and increase its competitiveness in the global market.

SK Biopharm's newly introduced epilepsy drug 'Opacalm' utilizes the KV7 potassium channel activation mechanism. This mechanism directly suppresses excessive electrical excitation in brain nerve cells, acting as a 'brake' for neurons.

That is, it operates by regulating hyperexcitation in the brain through potassium ion efflux before a seizure occurs, thereby blocking seizures. This is a differentiated approach from existing epilepsy treatments and is receiving high technical value and market expectations as a next-generation epilepsy treatment.

The background behind SK Biopharm's introduction of the next-generation epilepsy treatment 'Opacalm' technology reflects an intention to overcome the limitations of existing drugs. Opacalm shows excellent efficacy in patients with intractable and drug-resistant epilepsy who do not respond to existing drugs, and is evaluated to have improved on the side effects of first-generation drugs.

The KV7 activation mechanism has the advantage of minimizing side effects on normal cells by directly inhibiting nerve excitation while maintaining high selectivity. This is also expected to significantly contribute to improving patients' quality of life.

SK Biopharm expects to create complementary synergies through co-administration of the existing Xcopri and the newly introduced Opacalm. This strategy strengthens its epilepsy treatment portfolio while effectively resolving the risk of dependence on a single product.

The ability to leverage its existing network of specialists and medical professionals in the US to boost Opacalm's market penetration is also considered a strength. This will allow SK Biopharm to establish a stable growth foundation and further enhance its corporate value.

It has been argued that HanAll Biopharma is significantly undervalued compared to the market capitalization of its partner, Immunovant. Even if its value were assessed at 40-50% of Immunovant's market cap, HanAll Biopharma's appropriate market cap is analyzed to be around 5 trillion won.

However, HanAll Biopharma's current market capitalization remains in the early 3 trillion won range, leading to a strong perception of undervaluation. If the macro environment eases, these undervaluation factors are expected to be resolved, creating an opportunity for stock price rebound.

The recent adjustment in semiconductor equipment stocks is interpreted as temporary caution ahead of Nvidia's earnings announcement and a natural digestion process following the previous day's surge. This appears to be largely driven by market sentiment rather than specific negative news.

Therefore, rather than approaching semiconductor equipment stocks from a short-term perspective, the view is that they maintain high potential as a leading sector in the second half of the year. The current adjustment could even be an opportunity for low-price buying, and a long-term holding strategy is recommended.