Samsung BioLogics continues to roar upon high expectations on further growth by the biosimilar leader on ever-growing demand for the cheaper bioengineering drugs and full support from cash-rich Samsung Group.

The stock has more than doubled from 156,500 won ($138) at the start of this year to climb over 400,000 won last Friday. Over the last three months, it gained 48 percent.

Shares closed Tuesday up 1.27 percent at 399,000 won.

According to three or more analyst estimates averaged by FnGuide on Monday, Samsung BioLogics is estimated to have swung to an operating profit of 4.8 billion won in the third quarter from an operating loss of 8.5 billion won in the second quarter on a non-consolidated basis. For the fourth quarter, the corresponding figure is estimated to reach 10.5 billion won. The company achieved its first quarterly profit for the January-March period after its inception in 2011.

Analysts expect Samsung BioLogics will widen its operating profit going forward, delivering a full-year operating profit of 9 billion won this year and as much as 71.7 billion won next year.

The U.S. FDA recently granted a manufacturing license to Samsung BioLogics for products from its newly-built second plant in Songdo, Incheon, allowing the company to sell those products across America. "With the manufacturing approval, Samsung BioLogics is more likely to attract new customers for its planned third plant that could be operational from late 2019,” said Jin Hong-kuk, a researcher at Korea Investment & Securities.

Another positive factor is the development of a biosimilar version of breast cancer treatment Herceptin by Samsung Bioepis, the subsidiary of Samsung BioLogics. The investigational biologic drug could be the world’s first EMA-approved biosimilar in the treatment of breast cancer.

By Yoon Jin-ho, Ko Min-seo and Minu Kim

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