April 26, 2024

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[THE INVESTOR] Samsung BioLogics will turn to black from the third quarter as its plans for new drug development has been greenlighted, said Korea Investment and Securities on Aug. 22, maintaining a “buy” recommendation and 350,000 won (US$307.99) target price. 

Its subsidiary Bioepis has announced that it has partnered with Japan’s Takeda Pharmaceutical to co-develop a new bio drug, pushing the company over the boundary of biosimilar and offering long-term perspective as the leading global drug developer, said the securities firm. 

Utilizing the Japanese partner’s strength in intestinal medicine, the first project will be on acute pancreatitis which has not been developed so far, according to analyst Jin Hong-guk. 

Bioepis launched a Remicade biosimilar in the US last month and is awaiting approval for its first biosimilar, a knockoff of Herceptin, in Europe, with several more lined up for Europe next year. As a result, its earnings expectations will rise in time in the second half, said the analyst. 

Samsung BioLogics has suffered from a temporary drop in operation ratio in the second quarter but will turn to black in the third quarter and maintain the upturn, noted Jin recommending to purchase the stock with an eye on long-term prospects. 

By Hwang You-mee (glamazon@heraldcorp.com)