Korea Investment & Securities said on the 16th that Samsung Biologics is expected to broaden its order base by entering the United States. It maintained its "Buy" investment rating and raised its target price to 2.23 million won from 1.32 million won. The previous day, Samsung Biologics closed at 1.772 million won.
Researcher Wi Hae-ju at Korea Investment & Securities said, "As Samsung Biologics is set to announce the expansion of its sixth Songdo plant, the company is actively reviewing entry into the United States, the core region for the pharmaceutical business."
The researcher added, "Recently, big pharma companies have preferred dual sourcing in which drugs to be sold in the United States are produced by contract manufacturing organizations (CMOs) in the United States, and quantities for sales outside the United States are produced through other CMOs," and said, "Samsung Biologics' entry into the United States will be a major event that expands its order base."
U.S. moves to keep Chinese corporations in check are also seen as a positive. As foreign media reported that China's WuXi AppTec could be included on the U.S. Department of Defense's list of supply-chain and security risk corporations (1260H) to be released in January next year, shares of China's CDMO corporation WuXi Biologics fell 3% the previous day, while Samsung Biologics jumped more than 4%.
Wi said, "As U.S. checks on China enter a new phase, this is a period that can raise expectations for Samsung Biologics' entry into the United States, the groundbreaking of the sixth Songdo plant, and quarterly results," adding, "It is worth recalling that the company has reported results exceeding market expectations every quarter."