[Featured Stock] Samsung Biologics Up Over 4% "Impact of US Regulations on Chinese Companies"

Regarding the U.S. regulatory bill proposed on Chinese bio companies, Samsung Biologics is being mentioned as a beneficiary stock, leading to a strong performance in its stock price on the 29th.

As of 2:42 PM on the day, Samsung Biologics was trading at 804,000 KRW on the KOSPI market, up 31,000 KRW (4.01%) from the previous trading day.

On the 26th (local time), a bill was introduced in the U.S. Congress to ban transactions with Chinese bio companies. Some analysts have suggested that Samsung Biologics, a Korean bio-pharmaceutical contract development and manufacturing organization (CDMO), could benefit from this.

Samsung Biologics Exhibition Hall, a bio-pharmaceutical manufacturing company in Yeonsu-gu, Incheon [Image source=Yonhap News]

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The main point of this bill is to prohibit healthcare companies funded by the U.S. government from contracting with Chinese biotech companies that raise national security concerns. It is understood to include prohibitions on purchasing equipment and services from companies listed on the regulatory list, as well as bans on entering into new contracts or extending existing ones. If the bill is actually passed by Congress, the contract ban measures will be implemented within 60 days after the bill's passage. Researchers Byung-guk Park and Seung-yeon Han from NH Investment & Securities noted, "The U.S. regulatory bill on China mentioned Wuxi Biologics, a leading Chinese CDMO company (46% of sales in the U.S.). Therefore, other CDMOs could benefit."

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