1、EQUITY:HEALTH CARE&PHARMACEUTICALSSamsung Biologics 207940.KS 207940 KSGlobal Markets Research14 March 2025Beneficiary of rising CDMO penetrationThe US healthcare policy,SBs biosimilar progress offers upside risks Assume coverage with Buy rating beneficiary of rising CDMO penetration We assume cover

2、age on Samsung Biologics(SB)with a Buy rating and a new target price of KRW1,400,000.Our positive view is premised on:1)strong global demand for large-scale Contract Manufacturing Organizations(CMOs),as pharma companies are increasingly transitioning into Contract Development and Manufacturing Organ

3、izations(CDMO)to minimize risks associated with high capex and uncertainties around drug approvals;2)SBs efficient CMO execution fast ramp-up,solid order achievements,and comprehensive services;3)new contract wins likely after the construction of Plant 5(in Apr-2025);and 4)Samsung Bioepis(SBE;unlist

4、ed;main business is biosimilars)positive progress on Keytruda(a major drug expiring in 2028)and five other new drugs in the pipeline.We estimate CDMO penetration in the global bio-pharma industry for mammalian cells will rise to 45%by 2030F(2025:35%),and SB is likely to be a key beneficiary of this

5、trend,in our view.We forecast 2025F operating/net profit to grow by 28%/24%y-y,driven by the ramp-up of 180kL of the Plant#4(total capacity of 240kL).Catalyst:US Biosecure Act;SBs new biosimilar to offer upside If the US Biosecure Act,which prohibits federal agencies/fund recipients the use pf equip

6、ment/services from foreign adversaries(namely China),is enacted into the US law,it could offer demand upside for non-Chinese pharma companies.However,the US governments strategy to lower drug prices should drive increased CDMO utilization by large pharma companies,and hence the policy environment ap