Shares of Samsung Biologics and SK Bioscience rose to new highs on Tuesday on expectations that demand for Covid-19 vaccines will increase due to Delta variant resurgence around the world.

Shares of Samsung Biologics, a Korean consignment manufacturer of Modena’s coronavirus vaccine, crossed the 1 million won ($850) mark for the first time on Tuesday, becoming one of the three most expensive stocks on Kospi behind LG Household & Health Care (1,448,000 won) and Taekwang Industrial (1,066,000 won).

Samsung Biologics gained 2.95 percent to close at 1,012,000 won. SK Bioscience also broke a new record, hitting a fresh high of 319,000 won, up 10.57 percent.

Analysts say the resurgence of Covid-19 stimulates investor sentiment towards pharmaceutical and biotech stocks. The U.S. Food and Drug Administration (FDA) already approved booster shots in immunocompromised individuals and demand for vaccines will increase by a further 30 to 50 percent this and next year if booster shots are approved widely in the world.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]