Samsung Biologics shares buoyed by Biogen's successful Alzheimer treatment test

[Source: Samsung Biologics Co.]

Samsung Biologics shares remained positive Friday morning after rallying on the previous day thanks to improved sentiment across the biotech sector from news that Alzheimer’s disease drug being developed by Biogen and Eisai demonstrated efficacy in a phase 3 clinical trial.

Shares of Samsung Biologics started Friday’s trading session a bit higher after a 6 percent jump in the previous day, taking back the 800,000 won ($559) range in six days. It inched up 0.62 percent at 818,000 won.

On Thursday (local time), Biogen and Eisai announced that the anti-amyloid antibody lecanemab met its primary endpoint by reducing clinical decline relative to a placebo by 27 percent. Biogen shares jumped nearly 40 percent on the announcement.

Biogen plans to submit for full approval of lecanemab to the U.S. FDA by the first quarter of next year.

Analysts say the clinical progress of Biogen will benefit global contract manufacturers like Samsung Biogen. NH Investment & Securities estimates that more than 95 percent of Samsung Biologics’ drug substance sales come from contract manufacturing of monoclonal antibody therapies like lecanemab.

The overall monoclonal antibody therapy market is projected to grow by 9 to 10 percent annually and this has a significant impact on the permanent growth rate of contract manufacturers as a stock price is valuated on the expected future cash flows discounted in today’s value on a per-share basis, said NH analyst Park Byung-kuk.

Samsung Biologics has a long-standing partnership with Biogen. They established Samsung Bioepis in a joint venture, which was fully acquired by Samsung Biologics in January.

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