South Korean biopharmaceutical maker Samsung BioLogics Co. has overhauled Swiss drug behemoth Lonza in terms of market value though its sales remain dwarfed by the latter's top line, industry sources said Wednesday.
The market capitalization of Samsung BioLogics, a unit of South Korea's top conglomerate Samsung Group, came to 22.4 trillion won ($19.8 billion) as of Tuesday, compared with 22.1 trillion won for Lonza.
Established in 1897, Lonza is a global pharmaceutical company that engages in both the contract manufacturing organization and contract development organization business.
Samsung BioLogics, which manufactures drugs for world-famous pharmaceutical brands, such as US-based Bristol-Myers Squibb and Switzerland-based Roche Holding, debuted on the South Korean stock market in November 2016.
The South Korean company, which set sail in 2011, is targeting to surpass Lonza to become the leading global player in the CMO and CDO sectors.
The market value of Samsung BioLogics ranked 13th in South Korea, higher than top auto parts maker Hyundai Mobis and No. 1 mobile carrier SK Telecom.
Despite the market-cap jump, Samsung BioLogics remains no match for the Swiss drug titan in terms of sales and earnings.
Samsung BioLogics posted 170.9 billion won in sales in the first half of this year, with an operating loss of 5.1 billion won. Lonza's revenue reached some 2.7 trillion won with its earnings before interest, tax, depreciation and amortization standing at about 680 billion won.
Market analysts predicted the share price of Samsung BioLogics to rise down the road.
"Samsung BioLogics is expected to remain in the black after posting its last loss in the second quarter," said Jin Heung-guk, an analyst at Korea Investment & Securities Co. "Samsung Bioepis, its subsidiary, will continue to put new products on the world market."
The annual capacity of Samsung BioLogics currently stands at 180,000 liters and the company is building a third plant with a capacity of 180,000 liters. Lonza has an annual capacity of 260,000 liters. (Yonhap)