IBK Securities on the 22nd projected that MicroDigital will supply 2D bags to many domestic bio corporations, starting with Celltrion. It kept its investment rating at Buy and raised its target price to 25,000 won from 20,000 won. MicroDigital's closing price in the previous trading day was 9,080 won.
Lee Geon-jae, an analyst at IBK Securities, said, "MicroDigital has finalized the supply of 2D bags for the mass-production line of Celltrion's autoimmune disease treatment Remsima injection, which ranks No. 1 in Korea in pharmaceutical production value," and analyzed that "the supply of 2D bags will spread quickly to many domestic bio corporations, starting with Celltrion."
A 2D bag is a consumable part used in most processes such as the production, storage, and distribution of biopharmaceuticals, and is a key material corresponding to the "blood vessels" of the bio industry. Currently, major global companies hold an oligopoly over the market, and limits have been pointed out in terms of price, quality, and delivery time. Accordingly, there is a growing need for localization.
The analyst estimated that the global 2D bag market will grow at an average annual rate of 21% to expand to about 6 trillion won by 2028. The analyst also noted that on Nov. 17, Seo Jung-Jin, chair of Celltrion, said at the "follow-up public-private joint meeting on Korea-U.S. tariff negotiations" that research and development (R&D) expense would be expanded to 1 trillion won, and assessed that the government's localization policy for bio materials, parts, and equipment is also creating a favorable environment for MicroDigital.
The analyst said, "Among the top-tier corporations in bio materials, parts, and equipment selected by the Ministry of Trade, Industry and Energy, MicroDigital is the only one," adding, "For equipment and parts, sufficient competitiveness has been secured, and new top-tier customers are being won every year," and raised the target price by 25%.