Why is SK Biopharmaceuticals stock surging today?

SK Biopharmaceuticals stock experienced a significant surge of 10.5% on Wednesday after the company announced a major licensing agreement with Biohaven Bioscience Ireland. The deal grants SK Biopharmaceuticals the rights to the epilepsy drug candidate Opakalim, a range of Kv7 activator compounds, and the Kv7 discovery platform. This acquisition is valued at up to $795 million, with an upfront payment of $400 million, $350 million payable at the time of closing and an additional $50 million due one year later.

This transaction represents one of SK Biopharmaceuticals' most substantial pipeline investments to date. The deal comes amidst already-strong commercial momentum for the company. Just the day prior, analysts at Heungkuk Securities had upgraded their rating on SK Bio, giving a Buy rating with a 140,000 KRW price target, citing Cenobamate's 24% year-on-year prescription growth in July and second-quarter consolidated revenue of 247.4 billion KRW - a 40.3% increase from the previous year - as evidence of the company's core epilepsy franchise remaining on an upward trajectory.

The Biohaven acquisition now adds a complementary, early-stage epilepsy asset to SK Biopharmaceuticals' already-proven commercial engine, further fueling the market's positive reaction. On the wider market front, the KOSPI turned higher today, rising by around 0.9%.