Labor unrest at Samsung Biologics could weigh on earnings at the South Korean contract drug manufacturer, Daiwa Capital's Yoonki Bae says. The union is demanding an average 14% increase in base salary and a performance-based bonus equal to 20% of operating profit. This could undermine the rationale for the company's valuation premium, which has been supported by historically higher profitability and revenue growth than its global peers, the analyst notes. He expects the impact of a partial strike and production disruptions in May to be recognized in 3Q. Daiwa trims its target price for the company by 3.0% to 1,600,000 won and keeps a buy rating. Shares are 0.5% lower at 1,441,000 won. (kwanwoo.jun@wsj.com)