Korea Investment and Securities said Tuesday that foreign investors are interested in globally competitive Korean pharmaceutical companies such as Celltrion and Daewoong for their potential abroad.

The brokerage house published compiled observations from its meeting with 27 institutional investors in six major cities across North America for more than a week starting from Jan. 17.

In general, many investors said they regretted not investing enough in Korea’s biopharmaceutical sector considering the recent surge in share prices. Most said they were interested in companies that are competitive in foreign markets rather than in the Korean market because they invest on a global, not local, scale.

According to the report, foreign investors highly valued companies with excellent potential for expanding overseas presence based on price competitiveness and sound quality rather than companies developing new drugs.

Major areas of interest for investors included biosimilars, Botox products, dental implants and specific medical devices, it said.

For biosimilars, Celltrion and Celltrion Healthcare’s stock rallies were of central interest. Although most viewed the surges as indicative of high growth potential and profitability, some still expressed doubt regarding the company’s accounting methodology and transparency. Some investors also expressed concerns over whether Celltrion could expand its market share in the U.S. amid intensifying competition.

Meanwhile, investors mostly acknowledged Samsung Biologics’ CMO capabilities despite remaining hesitant regarding valuation.

Regarding Botox products, many U.S. investors expect Korean firms to pose a threat to Allergan as many are actively entering foreign markets. The report said U.S. sell-side analysts are eyeing Daewoong and its partner Evolus as the two partners are close to actual U.S. launch.

However, investors also pointed to fiercer competition in the market as a significant concern, making different predictions. Bernstein analysts said late entrants such as Revance Therapeutics, Daewoong Pharmaceutical, and Hugel would take up more than 30 percent of the U.S. market while Wells Fargo analysts said Allergan would stay ahead due to its brand power.

For implants, almost all investors were aware of Korea’s policies on implant insurance that will cover nearly half of the cost for more than 50,000 people under the “Mooncare.”

Although most said Osstem Implant held a position in Korean and Chinese markets and acknowledged the undervaluation of Dentium Implants, they also showed skepticism about the long-term sustainability of the two considering how the relatively low entry barriers might block export expansion, the report said.

For the pharmaceutical sector, most investors said GC Pharma, formerly known as Green Cross, had secured high entry barriers and solid growth potential. But the investors also showed worries about high valuation and uncertainty regarding FDA approval. Some investors also bought Hanmi Pharmaceutical stocks at a high price due to its R&D skill and platform business.

Meanwhile, some hedge funds valued companies developing new drugs highly despite their stock price volatility, the report said.