Korea Investment & Securities: "Pharmaceutical & Biotech, No Need to Hesitate... Top Pick Is Hanmi Pharmaceutical"

On September 24, Korea Investment & Securities maintained its "Overweight" recommendation for the pharmaceutical and biotech industry, stating that this is a "zone where there is no need to hesitate about buying." The firm named Hanmi Pharmaceutical, which is awaiting approval from the Ministry of Food and Drug Safety for its Korean-type obesity treatment, Efeglenatide, as its top pick. Samsung Biologics and GC Biopharma, both with high visibility for earnings growth, were selected as secondary picks.

Researcher Wi Haejoo from Korea Investment & Securities stated in the industry analysis report, "Pharmaceutical & Biotech - A Zone Where There Is No Need to Hesitate," released on this day, "It is time to focus on companies with momentum-driven earnings. Companies with competitive core assets, where all pharmaceutical policy and individual risks have already been reflected in the stock price, are expected to enter a revaluation phase."

As the top pick, Hanmi Pharmaceutical was highlighted, with Wi noting, "It is time to pay attention to earnings growth and clinical momentum, which had previously been overshadowed by management dispute risks." The recommendation is "Buy," with a new target price of 5.2 million won per share. Wi explained, "The core investment theme in the market is obesity and metabolic disease treatments," adding, "Hanmi Pharmaceutical is awaiting approval from the Ministry of Food and Drug Safety for Efeglenatide, a Korean-type obesity treatment, next year. Weight loss results are expected to be on par with Wegovy, and after its launch in the second half of 2026, sales are projected to increase rapidly." He assessed that in this scenario, achieving 10 billion won in sales by 2027 is highly likely.

Additionally, Wi pointed out that Hanmi's partner, Merck, is about to announce the results of a head-to-head Phase 2b clinical trial comparing Epinopegdutide and Semaglutide for MASH (Metabolic Dysfunction-Associated Steatohepatitis), marking the first such direct comparison in clinical development for this indication. He emphasized, "There is momentum with both commercial and symbolic significance, yet Hanmi Pharmaceutical's stock price has underperformed the KOSPI index since the beginning of the year. With the stock trading at 27 times the 12-month forward price-to-earnings ratio (PER), there is still upside potential."

The target price for Samsung Biologics was maintained at 13.2 million won per share. Wi evaluated, "There are no risks related to tariffs or drug price cuts in the biopharmaceutical CDMO (Contract Development and Manufacturing Organization) business. Although Samsung Biologics' stock price has underperformed the market, the business outlook and global CDMO trends are very positive." He added that the company has announced double-digit earnings growth and upward guidance, and the impact of U.S. tariffs is also limited.

For GC Biopharma, the recommendation is "Buy," with a new target price of 1.9 million won per share. Wi explained, "The core business, Alyglo (IVIG 10%), is exported to the United States, but risks from tariffs and drug price cuts are limited. Alyglo is made from U.S. plasma (raw material), so it is expected to be exempt from tariffs, and since there is a shortage of finished blood products relative to demand in the United States, the likelihood of being designated for drug price cuts is low." He added, "This is a zone where investors can buy with confidence."