DAISHIN SECURITIES said on the 10th that Samsung Biologics proved its competitiveness by signing the largest-ever order contract with a U.S.-based pharmaceutical company. It kept a target price of 1.3 million won and a "buy" rating. The previous trading day's closing price of Samsung Biologics was 1,031,000 won.
The previous day, Samsung Biologics signed a 1.8 trillion won contract for contract manufacturing of pharmaceuticals with a U.S.-based pharmaceutical company. With this contract, the cumulative order value comes to about 5.1 trillion won, which is about 86% of last year's annual cumulative orders (5.9 trillion won) already achieved.
DAISHIN SECURITIES noted that the recent stock price correction stems from three factors. ▲ Concerns about a slowdown in contract development and manufacturing organization (CDMO) demand following announcements by big pharma to expand production facilities in the United States after the launch of the Trump administration ▲ Concerns about the company's order competitiveness due to the controversy over U.S. import drug tariffs and the lack of production facilities in the United States ▲ The absence of large new orders since January added to the negative investor sentiment.
Lee Hee-young, a DAISHIN SECURITIES researcher, said, "We judge this contract to be a turning point that resolves previous concerns, and if it leads to an investment decision for the sixth plant, we expect it will once again prove the solid demand for antibody drugs."
Currently, the U.S. Biosecure Act is being pushed again in the form of an amendment to the 2026 National Defense Authorization Act, increasing the likelihood of passage. The amendment excludes equipment and services of our biotechnology corporations from government contracts, subsidies, and loans.
The researcher explained, "Structurally, this bill inevitably targets Chinese corporations as the main focus," adding, "Accordingly, we can expect Samsung Biologics to benefit by reflection, as it has production bases in Asian allied countries excluding China and India."
He added, "Based on the antibody-drug conjugate (ADC) production facility and the fifth plant, which went into full operation in the first half, there is a high possibility of additional order announcements within the year, and we maintain our top-pick view in the sector, positively assessing the renewed push for the U.S. Biosecure Act and the spin-off scheduled for Nov."