Samsung Biologics Share Price: A Comprehensive Analysis
Introduction:
Samsung Biologics is a biopharmaceutical company headquartered in South Korea, and it offers end-to-end development and manufacturing services for biologics. The company offers services like cell line development, clinical trial materials, drug substance production, and drug product manufacturing. Samsung Biologics started its journey in 2011, and within a decade, it has become one of the fastest-growing biopharmaceutical companies in the world with a market capitalization of more than $20 billion.
The History of Samsung Biologics:
Samsung Biologics is a subsidiary of Samsung Group, and its main objective was to diversify the company’s revenue streams. Initially, the company invested $1 billion in setting up its manufacturing facilities, and in 2012, it signed a contract with Bristol-Myers Squibb to manufacture biologics products. The company continued to expand, and in 2015, it signed a contract with Roche to produce a breast cancer drug called Herceptin.
In 2016, Samsung Biologics went public, and its share price surged by more than 160% on the first day of trading. In the same year, the company signed a contract with Biogen to manufacture biosimilars for the treatment of multiple sclerosis and spinal muscular atrophy.
Factors Affecting Samsung Biologics Share Price:
The share price of Samsung Biologics is influenced by various factors, and some of them are mentioned below:
1. Contract Wins:
Samsung Biologics has signed multiple contracts with prominent pharmaceutical companies, and these contracts act as a catalyst for the company’s growth. When the company wins a contract, its share price rises, and when a contract ends, the share price falls.
2. Market Competition:
Biopharmaceutical companies face intense market competition, and Samsung Biologics is no exception. The company competes with other prominent biopharmaceutical companies like Lonza, Catalent, and Thermo Fisher Scientific, and the market competition affects the company’s share price.
3. Financial Performance:
The financial performance of Samsung Biologics also influences its share price. If the company posts strong financial results, the share price rises, and if the company’s financial performance is weak, the share price falls.
Samsung Biologics Share Price Performance:
The share price of Samsung Biologics has been volatile since its IPO. In 2019, the share price of Samsung Biologics reached its peak at KRW 526,000, and in 2020, the share price fell to KRW 277,000. However, in 2021, the share price of Samsung Biologics has been performing well, and it has reached KRW 400,000 in August 2021.
Conclusion:
The biopharmaceutical industry is an ever-evolving industry with intense market competition, and Samsung Biologics has emerged as a significant player in the industry within a decade. The company has signed multiple contracts with prominent pharmaceutical companies, and its financial performance has been strong over the years. The share price of Samsung Biologics has been volatile since its IPO, but in 2021, the share price has been performing well.