What Happened?
Prestige Biologics has signed an exclusive distribution and supply agreement with Samchundang Pharm for their Avastin biosimilar (SCD411) in 8 Eastern European countries. They also received European marketing authorization for their own biosimilar, HD201 (Tuznue).
Why is this Event Important?
This agreement is significant as it marks Prestige Biologics’ expansion beyond CDMO into sales and distribution. The European marketing authorization for HD201 is expected to be a key driver for revenue growth.
So, What Does This Mean for Investors?
- Positive Impacts: New revenue streams, global market expansion, CDMO business synergy, expected improvement in financial structure.
- Negative Impacts and Risks: Uncertainty in sales performance, operational and management burden, impact of exchange rate fluctuations, intensified market competition.
Both events are likely to act as positive momentum, but the actual performance may vary depending on market conditions and the competitive landscape.
What Should Investors Do?
In the short term, investors should pay attention to the performance of the contract with Samchundang Pharm and initial sales of HD201. In the long term, it’s advisable to develop an investment strategy considering the potential for growth as a global CDMO company. However, investors should be mindful of the continued operating losses and financial risks.