[Click eStock] "Bionex, Beneficiary of US Biosecurity Act"

IM Securities analyzed on the 12th that Bionex is expected to benefit from the U.S. Biosecurity Act.

Lee Sangheon, a researcher at IM Securities, introduced, "In January this year, the U.S. House and Senate jointly proposed the Biosecurity Act to protect Americans' personal health and genetic information from concerning companies in the advanced bioindustry sector." He added, "The Biosecurity Act is a bill that prohibits the U.S. government from contracting with or providing subsidies to biotechnology companies from countries of concern such as China, and companies that do business with them."

The researcher analyzed, "If the Biosecurity Act passes the U.S. Senate plenary session and the president's signature stage in the second half of this year, it will be finalized. Many overseas global companies that have been outsourcing production through global biopharmaceutical contract development and manufacturing organizations (CDMOs) such as China's Wuxi Biologics are seeking new alternatives."

He continued, "Pharmaceutical contract manufacturing organizations (CMOs) capable of clinical, sample, and regional commercialization production will attract attention," and predicted, "Bionex's Osong plant, which has not contributed to the overall CMO utilization rate increase, will secure new customers."

The researcher explained, "The order backlog of Bionex's bio division maintained around 60 billion KRW, with 61.9 billion KRW at the end of 2021 and 66.7 billion KRW at the end of 2022," but added, "The order backlog decreased to 28.4 billion KRW and 36.2 billion KRW as of the end of 2023 and the second quarter of this year, respectively." He emphasized, "Sales have been sluggish since the second half of last year," and stated, "They will establish a foundation to expand new customers by securing a track record of commercial production of biopharmaceuticals."