[Click eStock] "Samsung Bio, Gradual Benefits if US Biosecurity Act Passes"

Samsung Biologics is expected to gradually benefit from the U.S. Biosecure Act, according to KB Securities on the 5th.

Samsung Biologics 1st Bio Campus View
[Photo by Samsung Biologics]

Hye-min Kim, an analyst at KB Securities, stated, "We are paying close attention to the legislative schedule of the U.S. Biosecure Act," adding, "If the decoupling from Chinese companies such as the Chinese-owned Wuxi Biologics becomes visible, there is great expectation that non-Chinese contract development and manufacturing organizations (CDMOs) will benefit."

Bloomberg reported on the 3rd that voting on the Biosecure Act will begin within 9 to 13 days, and if the bill passes, it can be considered as having passed the full House of Representatives.

Analyst Kim explained, "There were doubts about the possibility of the bill passing due to legislative delays, such as the exclusion of the Biosecure Act from the House National Defense Authorization Act (NDAA) amendment in June," adding, "With a concrete schedule now announced, expectations for the bill's passage are rising again."

He forecasted, "Although the related revenue proportion in total sales may seem small at 10-15%, the company revealed during the Q2 earnings conference that inquiries have more than doubled, so the effects can be gradually felt."

However, he noted, "Since the Biosecure Act sets a grace period until 2032, it should be judged from a mid- to long-term perspective rather than a short-term one," and added, "There are other non-Chinese competitors such as Lonza and Fujifilm, so it is necessary to monitor the developments."