[Edaily Reporter kyoungeun kim ] On the 24th, iM Securities announced that it is lowering its target price for SAMSUNG BIOLOGICS(207940)from 2.2 million won to 1.9 million won, following adjustments to facility investment figures related to the groundbreaking of Plant No. 6 and the third campus. The firm maintained its “Buy” investment rating.
Jeong Jae-won, an analyst at iM Securities, explained in a report released that day, “We have adjusted the facility investment figures to reflect the earnings estimates and updates regarding the start of construction on Plant No. 6 and the Third Campus provided in the latest earnings release,” citing this as the reason for the target price reduction.
Although second-quarter earnings fell short of expectations, the move is seen as aligning with the industry’s recent trend toward geographic diversification following the acquisition of a peptide specialist company.
SAMSUNG BIOLOGICS’ second-quarter operating profit was 586.4 billion won, a 23% year-over-year increase, but slightly below the consensus estimate of 599.7 billion won. Regarding this, Analyst Jeong explained, “This is due to the prior recognition of costs related to the Rockville, U.S., production facility and Plant 5 before revenue is recognized,” adding, “Plants 1 through 4 maintained full-capacity operations throughout the second quarter.”
Revenue from Plant 5 and the U.S. facility is expected to begin in the third quarter. Analyst Jeong predicted, “With the establishment of a sales office in the Netherlands during the third quarter, the company will secure sales bases in all three of its key global markets—following the U.S. and Asia.” He added, “This will enable a swift response to customer demand in major regions, and by expanding communication with local clients, it could lead to new orders.”
Regarding the announcement on the 20th regarding the acquisition of Polypeptide Group, a Swiss-based contract development and manufacturing organization (CDMO) specializing in peptides, he assessed, “The largest shareholder is Draupnir Holding B.V., which holds a 55.65% stake and has committed to participating in the tender offer,” adding, “Since securing just over 10% of the shares offered will meet the target level, the uncertainty surrounding the transaction has been resolved.”
The acquisition amount is 2.7 trillion won, the largest of its kind in Korea, and the transaction will be conducted as an all-cash deal involving a tender offer for 100% of Polypeptide Group’s outstanding shares.
All procedures, including regulatory approvals, are expected to be finalized by the end of this year. Upon completion of the acquisition, the Polypeptide Group will be delisted from the Swiss Stock Exchange (SIX) and become a wholly-owned subsidiary of Draupnir.
The Polypeptide Group was established in 1996 as a spin-off from the peptide production division of Ferring Pharmaceuticals. Researcher Jeong stated, “The company has nearly 70 years of experience in manufacturing peptide active pharmaceutical ingredients (APIs),” adding, “It currently has a track record of over 1,000 projects globally and is participating as a key manufacturing partner in more than 30% of global Phase 3 clinical trials involving peptides.”
He added, “We have production sites in five countries worldwide, including our Swiss headquarters,” noting, “This global footprint spans the U.S., Europe, and Asia, aligning with the growing industry trend toward site diversification.”