The author is an analyst of KB Securities. She can be reached at kahye.hong@kbfg.com. -- Ed. Initiate coverage with BUY and target price of KRW340,000 We initiate coverage of Celltrion with a BUY rating and TP of KRW340,000. Our DCF-derived TP (50.5x 2021 P/E) reflects 6.04% WACC (6.04% cost of equi
The author is an analyst of KB Securities. She can be reached at kahye.hong@kbfg.com. -- Ed. Initiate coverage with POSITIVE rating; top pick: Samsung BiologicsWe initiate coverage of Pharmaceutical & Biotechnology with a POSITIVE rating. Our optimism lies in our view that the growing global biophar
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed. 3Q preview: Sales to remain solid, OP to fall short on R&D spendCelltrion is expected to have posted consolidated sales of KRW459.6bn (+59.0% YoY) and operating profit of KRW172.4bn (+67.2% YoY, o
Celltrion Group will promote the merger of its three units to adopt a holding company system. The three units are Celltrion Co., a biosimilar and new drug developer, Celltrion Healthcare, a drug distribution and sales company, and Celltrion Pharmaceutical, a chemical synthesis drug development and s
Chong Kun Dang announced on Sept. 17 that it will export second-generation anemia biosimilar "Nesbell" to Lotus International, a company that is in charge of the Asian business of U.S. global pharmaceutical company Alvogen.Through the deal, Chong Kun Dang will supply Nesbell to Lotus and receive dow
The Ministry of Food and Drug Safety (MFDS) has recently announced that South Korea’s pharmaceutical market size was estimated at 24,310 billion won in 2019, up 5.2 percent from 23,117.5 billion in 2018.The total production amount of pharmaceuticals stood at 22,313.2 billion, which is a 5.7 percent
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed. 2Q20 review: 20%-level OPM on rising share of US salesCelltrion Healthcare delivered an earnings surprise for 2Q20. Consolidated operating profit came in at KRW86.8bn (+838.4% YoY, operating margi
The authors are analysts of NH Investment & Securities. They can be reached at william.ku@nhqv.com and weihan@nhqv.com, respectively. – Ed. 1. Confident towards domestic bio sector’s mid/long-term growth potentialDomestic bio sector: 20-year-long new drug development historyKorea’s first domesticall
The authors are analysts of NH Investment & Securities. They can be reached at william.ku@nhqv.com and weihan@nhqv.com, respectively. – Ed. 1. Domestic market conditions remain soundMajor pharmas sustain growthUp until 2012, Korea’s pharma industry players mainly focused on generic drug sales, targe
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed. Plan for a 1:1 bonus issueAlteogen, on July 7, disclosed plans for a bonus issue of one new share for every outstanding common share. The record date of new share allotment is set forJuly 24 and n
Korea’s COVID-19 diagnostic kits have led the world to pay attention to K-Bio's capabilities. At the same time, they prompted hackers to attack Korean bio companies.The primary target of foreign hackers is Korean companies that produce COVID-19 diagnostic kits. Hacking attempts have also been ma
The Korea Health Industry Development Institute announced on June 9 that exports from South Korea’s health industry for the first four months of this year totaled US$6,085.16 million, up 21.9 percent from a year ago, and the average monthly exports from the industry added up to US$1,521.29 million,
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed. Potential value of SC formulations and expansion of Hybrozyme licensingThe value of biosimilar versions that can be administered subcutaneously has been in the spotlight for some time. Subcutaneou
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed.1Q20 review: Strong earnings on even sales growth across all productsCelltrion posted consolidated sales of KRW372.8bn (+68.2% YoY) and operating profit of KRW120.2bn (+55.4% YoY, operating margin
The author is an analyst of NH Investment & Securities. He can be reached at william.ku@nhqv.com. -- Ed. Dong-A ST delivered quarterly record-high earnings in 1Q20 on supply expansion prior to enforcement of the MFDS’s order to suspend business operations (March~May). But, operating losses in 2Q20 a
The author is an analyst of NH Investment & Securities. He can be reached at william.ku@nhqv.com. -- Ed. Samsung Biologics’ 1Q20 OP beat consensus by 46.2% thanks to rising utilization rates and reduced SG&A expenses. We raise our TP to reflect revised DCF valuation assumptions. We maintain a Buy ra
The Korean healthcare industry’s exports increased 22.5 percent in the first quarter of 2020 amid the COVID-19 crisis.According to the Korea Health Industry Development Institute, Korea’s exports of pharmaceuticals, medical devices, and cosmetics totaled US$4.4 billion in the first quarter of 2020.B
The author is an analyst of Shinhan Investment Corp. He can be reached at shawn1225@shinhan.com. -- Ed. 1Q20 preview: Earnings to meet market consensusSamsung Biologics is expected to have reported operating profit of KRW41bn (positive swing YoY, operating margin of 20.4%) on sales of KRW201.4bn (+6
The author is an analyst of NH Investment & Securities. He can be reached at william.ku@nhqv.com. -- Ed. Dong-A ST’s 1Q20 earnings are expected to show y-y improvement, thanks to supply expansion prior to enforcement of the MFDS’s order to suspend business operations (March-May). However, we anticip
The following is an analysis from Shinhan Investment Corp. of the impact that the spread of COVID-19 has on the Korean economy, capital markets and major industrial sectors. -- Ed. Economy: Ongoing impact of COVID-19 on the real economyThe COVID-19 outbreak affects the real economy: 1)decline in dom