Samsung Biologics rises for third straight session amid market slump, rebounds 11% [Stock NOW]

[Financial News] As the South Korean stock market continues to plunge, Samsung Biologics is extending its rebound, rising for a third straight trading session.
With market volatility increasing, large-cap pharmaceutical and biotech stocks with stable earnings and profitability are emerging as defensive alternatives.
According to the Korea Exchange, as of 9:12 a.m. on the 19th, Samsung Biologics was trading at 1,331,000 won, up 33,000 won (2.54%) from the previous trading session. After rising 5.08% on the 15th and 3.77% on the 16th, it was also trading higher today. Its cumulative gain over the past three trading sessions is about 11.8%.
Securities analysts are also taking note of the defensive appeal of pharmaceutical and biotech stocks. Korea Investment & Securities maintained its “overweight” rating on the pharmaceutical and biotech sectors today and named Samsung Biologics and Celltrion as its top picks.
The analysis is that demand for pharmaceuticals is relatively insensitive to economic changes, limiting concerns about earnings deterioration even as economic uncertainty increases.
Over the past five trading sessions, the KRX Healthcare Index rose 0.4%, while the KOSPI fell 11.4%. Healthcare stocks also fared relatively well in global markets: the S&P 500 Health Care Index rose 5.9% over the past month and gained 5.6% over the past five trading sessions.
Samsung Biologics’ profitability was also cited as a reason to invest. Korea Investment & Securities forecast an operating margin of 44.0% for the company this year.
That is 25.0 percentage points higher than the margin at global contract development and manufacturing organization (CDMO) Lonza, and 10.6 percentage points higher than at WuXi Biologics. The assessment is that efficient operations and an expansion in new orders will support profitability.
Uncertainty related to the recently emerging strike remains a variable, however. Korea Investment & Securities recommended monitoring the situation and proceeding cautiously. The assessment is that even if the strike is prolonged, concerns reflected in the share price could be excessive if its actual impact on revenue is limited.
Momentum from new orders at major global CDMOs and the policy environment surrounding China’s biotech industry were also cited as medium- to long-term factors for optimism. With volatility continuing across the broader stock market, attention is on whether Samsung Biologics can sustain its upward trend on the strength of its earnings stability and competitiveness in winning orders.

[email protected] Kang Jung-mo Reporter