[Click eStock] "Samchundang Pharmaceutical, Bio-similar Joint Development Contract Becoming Visible"

[Asia Economy Reporter Hyunseok Yoo] Cape Investment & Securities analyzed on the 8th that the joint development contract for the European Ailia biosimilar with Samchundang Pharmaceutical is becoming visible. The investment opinion 'Buy' and the target stock price of 80,000 won were maintained.

Samchundang Pharmaceutical was established in 1943 and has established itself as a domestic ophthalmology specialist pharmaceutical company. Since starting global generic exports in 2016, it has been expanding new businesses such as biosimilar joint development (Japan) in 2019 and innovative medical device (non-invasive blood glucose meter) development.

Kim Hyungsoo, a researcher at Cape Investment & Securities, said, "After signing an exclusive sales and supply contract for SCD411 (Ailia biosimilar) with Japan's SENJU Pharmaceutical in March last year, a preliminary contract was signed with a global pharmaceutical company (Company M) last March," adding, "At the end of July, a factory inspection was completed using a VR system, and currently, some conditions of the final contract are being adjusted. It is expected that the main contract will be completed once both parties reach an agreement."

He emphasized, "The generic drug export contracts signed since 2016 by Samchundang Pharmaceutical are structured on a profit-sharing basis, which can generate high profits," and added, "In 2022, when all items are registered, it is expected to generate sales of 187.8 billion won and operating profit of 136.5 billion won from exports. Since ophthalmic drug prices in the US are 17 to 70 times higher than in Korea, profit sharing with import partners is possible."

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