Samsung Biologics, Sillajen likely to be listed by year-end: analysts

[THE INVESTOR] Samsung Biologics and Sillajen are likely to be listed by the end of this year, according to analysts on July 19.

Samsung Biologics is preparing to apply for preliminary assessment by the Korea Exchange by August this year. Once listed, the stock value is expected to reach around 10 trillion won (US$8.77 billion).

The company posted a second straight year of loss in 2015, with the amount widening to 203.6 billion won from 119.5 billion won in 2014. 

Analysts say that the IPO managing firms are most likely to use the discounted cash flow method to more accurately evaluate Samsung Biologics’ worth.

The firm is aiming to achieve 1 trillion won of sales by 2020, with an operating profit rate of 30-40 percent.

Some analysts cautioned against too much optimism about the biotech company’s stock value.

“Major pharmaceutical companies such as Johnson & Johnson are also strengthening their biotechnology divisions, meaning Samsung Biologics may not be able to have the upper hand by 2020,” said one industry watcher, on the condition of anonymity.

Biomedical developer Sillajen, is scheduled to apply for KOSDAQ listing in September.

In a technological assessment in April, Sillajen received the highest AA level among the firms applying for listing based on the assessment, the firm said.

Meanwhile, Celltrion Healthcare, run by Celltrion(chairman Seo Jung-jin), was not expected to be listed before the year is out.

The biggest reason is the lack of consensus on a timeline between JP Morgan, the second-largest shareholder of the firm, and the third-largest Temasek of Singapore.

The discord is mostly over the upcoming US sales of Remsima, the world’s first biosimilar antibody-based treatment.

Remsima is a biosimilar of Remicade, and the product now faces a lawsuit by its producer Johnson & Johnson.

By Kim Ji-hyun (jemmie@heraldcorp.com)