DB Asset Management Launches Domestic Biosimilar & CDMO ETF

DB Asset Management, leveraging 15 years of experience managing domestic bio-healthcare funds, listed the ‘Mighty Biosimilar & CDMO Active ETF’ on the 24th, which focuses on investing in domestic bio stocks.

The DB Mighty Biosimilar & CDMO Active ETF selects and invests in around 20 companies within the bio sector, specifically targeting biosimilars and Contract Development and Manufacturing Organization (CDMO) related firms.

Biosimilars are biologic drugs developed by replicating already approved biologics after their patents have expired, producing products such as anticancer drugs, hormones, and immunotherapies. CDMO refers to the business of manufacturing pharmaceuticals on behalf of pharmaceutical or biotech companies that do not operate their own production facilities, handling the entire process from early development stages through manufacturing process development, clinical trial support, to commercial production.

The DB Mighty Biosimilar & CDMO Active ETF plans to maintain a portfolio with a high weighting of representative companies in the domestic medical sector, such as Celltrion, a leader in the biosimilar industry, and Samsung Biologics, a leader in the CDMO industry.

With the emergence of various biopharmaceuticals and the biosimilar market environment activated by the patent expiration of blockbuster drugs, along with the increase in contract manufacturing by global pharmaceutical companies aiming to reduce costs and focus on R&D, the ETF will diversify investments in stocks related to the rapidly growing biosimilar and CDMO industries. As of the recent reference point, major investment holdings include Samsung Biologics (22.0%), Celltrion (21.8%), ST Pharm (4.0%), Alteogen (4.0%), Yuhan Corporation (4.0%), and Green Cross Holdings (3.9%).

Hong Eun-pyo, Head of Quantitative Operations overseeing the ETF management, stated, "The biosimilar and CDMO markets are expected to sustain continuous growth to meet the large-scale demand for new drugs driven by global infectious disease outbreaks like the COVID-19 pandemic."

He added, "As seen in the recent surge in CDMO demand due to the supply shortage of the diet drug Wegovy, explosive demand for CDMO services is expected to continue with the development of breakthrough new drugs."

This content was produced with the assistance of AI translation services.