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Samsung's biopharma unit makes successful debut in bourse after Trump's win

Xinhua, November 10, 2016 Adjust font size:

Samsung BioLogics, a biopharmaceutical unit of Samsung Group, South Korea's biggest family-run conglomerate, made its successful debut in local bourse on Thursday as Donald Trump's presidential win removed uncertainties in the U.S. healthcare policy.

BioLogics shares closed at 144,000 won (125 U.S. dollars) in their first trading day. It was 5.9 percent higher than the initial public offering (IPO) price of 136,000 won. The benchmark KOSPI index was up 2.3 percent.

The contract manufacturer of biological drugs was launched in April 2011 by Samsung Group which is struggling to make a foray into the healthcare industry.

As part of its efforts to push for biotech drugs, Samsung Bioepis was established in 2012 to develop biosimilars, or copycats of biological medicine.

Samsung Electronics, the group's crown jewel unit, has been struggling to find new growth engine amid stiff competition in the global smartphone market that helped the tech behemoth generate at least half of its revenue.

The tech company discontinued Galaxy Note 7 smartphones on reported devices catching fire and heating up, damaging the South Korean company's brand image and reputation.

Samsung BioLogics is 31.49 percent owned by Samsung Electronics and 43.44 percent by Samsung C&T, the de-facto holding company of Samsung Group.

The successful market debut of BioLogics came as uncertainties were removed after Trump was elected U.S. president. Defeated Hilary Clinton had argued for lower drug prices in the United States, helping the pharmaceutical sector fall in stock prices recently.

Overall pharmaceutical stocks gained ground. Hanmi Pharm, former biggest pharm stock in the KOSPI before BioLogics' listing, jumped 12.2 percent. The KOSDAQ's bellwether Celltrion, which develops biosimilars, advanced 4.6 percent. Endit