[Click eStock] "Samil Pharmaceutical, Rapid Growth Expected... Focus on 3 Momentum Factors in the Second Half"

On the 4th, SK Securities analyzed that Samil Pharmaceutical will experience rapid external growth starting next year, driven by the market establishment of major new products and the full-scale operation of the Vietnam CMO factory.

Heo Seonjae, a researcher at SK Securities, stated in a report on the same day, “In the second quarter of this year, there was a significant stock price adjustment due to the resolution of overhang volumes such as CB and BW, and the absence of follow-up momentum related to Roersibivint (an osteoarthritis treatment) and the Vietnam CMO factory, which had attracted considerable attention at the beginning of the year.” He added, “However, from the third quarter, investment sentiment in the pharmaceutical/biotech sector has improved, and expectations for new businesses have re-emerged, leading to a recovery in stock prices.”

Researcher Heo explained, “At this point, after sufficient price adjustment, a steady stock price recovery trend is expected to continue,” and analyzed, “Now is a good time to focus on the GMP certification and order contracts of the Vietnam CMO factory, as well as the FDA application schedule for Roersibivint.”

Regarding the ophthalmic CMO, global big pharma companies are currently reducing their in-house production ratio and increasing CMO outsourcing due to cost reduction issues. Therefore, the company’s Vietnam CMO factory, completed with an investment of about 120 billion KRW, is expected to directly benefit.

He said, “In the third quarter, Vietnam/WHO GMP approval will be secured, and order contracts will be made with two global ophthalmic companies,” adding, “The total production capacity of the Vietnam factory is about 280 billion KRW (full capacity 600 billion KRW).”

Additionally, the FDA application for Roersibivint, for which the company secured exclusive domestic rights from the US biotech company Biosplice, is expected to be submitted within the second half of the year. He stated, “If Roersibivint successfully obtains new drug approval, the value of the company’s exclusive domestic rights will exceed expectations,” and analyzed, “Conservatively estimated potential performance of Roersibivint for the company is sales of 200 billion KRW and operating profit of 40 billion KRW.”

The effects of new products are also anticipated. This year, gradual sales expansion is expected for ▲ Amelibu, a retinal disease treatment (the only domestic biosimilar of Lucentis, which has a market size of 4.5 trillion KRW), newly launched in the first quarter, ▲ Levakei, a self-developed improved new drug for dry eye syndrome, and ▲ SB15, an Eylea biosimilar launched in the second quarter (with an exclusive sales contract with Samsung Bioepis).

He forecasted, “Samil Pharmaceutical’s performance this year will be sales of 248.2 billion KRW and operating profit of 11.3 billion KRW, increasing by 26.4% and 74.6% respectively compared to the previous year,” and added, “The main growth factors are steady growth in existing drug sales, the effects of new product launches such as Amelibu and Levakei, and the acquisition of the Korean Sandoz business.”

He further added, “From next year, rapid external growth is expected as major new products establish themselves in the market and the Vietnam CMO factory begins full-scale operation.”