Samsung BioLogics Jumps to Third in Market Cap in Seoul Bourse

Samsung BioLogics Co.’s market value has surpassed that of its biosimilar rival Celltrion for the first time as its stock prices reach an all-time high.

At 9:24 a.m. on April 10, Samsung BioLogics’ shares gained 5.16 percent to trade at 591,000 won (US$553.37) on the KOSPI. The company’s stock price more than quadrupled from its offering price of 135,000 won (US$126.40) in 2016. It reached 600,000 won (US$561.80) in early trading, hitting the 52-week all-time high.

The surge in stock price boosted the market capitalization of Samsung BioLogics to 39.3 trillion won (US$36.8 billion), lifting it to third place after semiconductor behemoths Samsung Electronics and SK Hynix. The drug maker displaced local rival Celltrion, which is now in fourth with a market value of 37.41 trillion won (US$35.03 billion). Samsung BioLogics, which is a latecomer in the sector, has taken the lead with a margin of 2 trillion won (US$1.87 billion) in market capitalization.

Market experts said that the upturn is largely due to a favorable legal settlement earlier this month, which allows Samsung BioLogics to sell Imraldi, a biosimilar of Humira, a treatment for rheumatoid arthritis, psoriatic arthritis and Crohn’s disease. 

Samsung Bioepis Co., a subsidiary of Samsung BioLogics, announced on April 6 that it is able to sell Imraldi in Europe starting from October. This is because Samsung Bioepis reached a settlement on patent litigation over Humira with multinational pharmaceutical firm AbbVie by finalizing a licensing agreement.

With the news, Samsung BioLogics saw its share prices rise 8.29 percent from the closing price a day earlier and its volume of trading has doubled from the previous trading day. In addition, a news outlet reported a day ago that Samsung Group has decided to focus on the biopharmaceutical sector as one of the two core businesses along with electronics, pushing up the price of Samsung BioLogics’ shares.

Securities companies are also raising Samsung BioLogics’ target stock price. Korea Investment & Securities Co. raised it from 530,000 won (US$498.12) to 610,000 won (US$573.31), while SK Securities Co. leveled it up from 390,000 won (US$366.54) to 660,000 won (US$620.30).