[Click eStock] "Aprogen, the Pearl of CMO and CDMO"

Hanyang Securities analyzed Aprogen on the 10th as the pearl of the CMO and CDMO business.

Lee Joon-seok, a researcher at Hanyang Securities, stated, "It is important to note that Aprogen possesses GMP facilities applying the perfusion method of continuous culture," and analyzed, "They have obtained both cGMP and qGMP certifications, and with high productivity through continuous culture, significant CDMO contracts are expected to occur starting this year."

According to the Korea Bio Association, the global biopharmaceutical CDMO market is projected to grow from $19.68 billion in 2013 to $43.85 billion in 2029, with a compound annual growth rate (CAGR) expected to be 14.3%.

Researcher Lee Joon-seok said, "With the expiration of AbbVie's Humira (an autoimmune disease treatment) patent last year and other major new drug patents scheduled to expire from 2024, the generic and biosimilar markets will expand significantly," adding, "The recent passage of the Biosecurity Act by the U.S. House of Representatives will also benefit domestic and international CDMO companies."

He explained, "It takes 5 to 8 years to build factories and obtain GMP certification, so supply is significantly insufficient compared to the increasing demand," and added, "The company has secured overwhelmingly high productivity with high-efficiency cell lines and continuous culture technology, possessing CAPA capable of meeting 40% of the global consumption volume based on Herceptin biosimilars and 107% based on Humira biosimilars."

He continued, "While global CDMO demand is rapidly increasing, Samsung Biologics is also expanding its 5th and 6th plants, and Celltrion is responding to demand through outsourcing," and added, "The company holds the third-largest production scale after the top two domestic companies and, with high productivity through the continuous culture method, its future performance growth is expected."