SK Biopharmaceuticals 2Q earnings beat; strong Xcopri sales as single product vs. increasing cost burdens ahead; Neutral

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

SK Biopharmaceuticals

2Q earnings beat; strong Xcopri sales as single product

vs. increasing cost burdens ahead; Neutral

Neutral

326030.KS, 326030 KS

Price (05 Aug 26):W82,700

▼Price Target (Jun-27):W90,000

Prior (Jun-27):W110,000

Operating profit came in strong at W97bn (+8% q/q and 57% y/y), 18%/17% above

JPMe/Street estimates, driven by 1) greater Xcopri (cenobamate) sales on rising

prescriptions, 2) mix-led margin uplift, and 3) KRW weakness that amplified topline expansion and operating leverage. We view the Xcopri-led growth as margin

accretive amid FX tailwinds, although SG&A costs should trend higher in coming

quarters on higher R&D and marketing spend. On the anticipated license-in deal

for a 2nd CNS product, management is still willing to make a decision within 2026

(after a multi-year delay), widening its universe to late-stage assets as well as

commercial assets, to improve earnings durability and help fund longer-dated

R&D (RPT/TPD). Penciling in the 2Q earnings print and higher forward cost

intensity, we adjust down our longer-term earnings estimates and trim our PT to

W90K from W110K. Overall, we believe the earnings beat is positive, but largely

priced in. We also see limited basis for a valuation premium until the drug portfolio

diversifies and/or clearer progress in its early-stage R&D programs happens.

Therefore, we retain Neutral.

Stronger top line expansion. Sales rose to W247bn (+9% q/q and +40% y/y),

8%/6% above JPMe/Street estimates. Xcopri US sales grew to W224bn (+14%

q/q and +46% y/y) as prescription momentum re-accelerated following a

temporary 1Q slowdown. DP/API revenue was steady, while service revenue

normalized to W10bn (-43% q/q and -46% y/y) off a high base that included

one-offs. A weak KRW also helped amplify top-line expansion, supporting

operating leverage.

Resilient margins. Operating profit was a clear beat at W97bn (+8% q/q and

57% y/y) vs. our/market expectations. Despite the absence of a cost-free

milestone, GPM remained stable at 94% in 2Q26 (vs. 94% in 1Q26) owing to

a more profitable sales mix with Xcopri-driven topline growth. Although

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