Samsung Biologics tops 1 trillion won in profit

with a 12-fold increase in 4 years

Last year’s annual sales amounted to 3.6946 trillion won, resulting in an operating profit of 1.0735 trillion won

Samsung Bioepis, Samsung Biologics’s U.S. subsidiary, tops its annual sales of 1 trillion won

Samsung Biologics

For the first time, Samsung Biologics has surpassed a yearly operating profit of 1 trillion won among pharmaceutical companies in Korea.

 

Due to the continued growth of CDMO services for biopharmaceuticals, the company has accumulated quarter sales exceeding 1 trillion won in consecutive quarters.

 

According to the Financial Supervisory Service report on the 24th, Samsung Biologics saw an operating profit of 350 billion won in Q4 last year, a 11.9% YoY increase.

 

The annuals sales for the year reached 1.735 trillion won, showing a 11.2% increase from the previous year.

 

Additionally, in Q3 last year, Samsung Biologics became the first in Korea’s history to exceed quarter sales of 1 trillion won, and they continued to show this growth in Q4.

 

Last year, Samsung Biologics gained an operating profit of 1.114 trillion won, a 13.2% increase compared to the previous year.

 

Annual sales reached 3.695 trillion won, demonstrating a 23.1% increase.

 

These figures represent the company's most significant annual sales and an operating profit since its establishment.

 

Samsung Biologics topped annual sales of 1 trillion won for the first time in the history of pharmaceutical companies in Korea.

 

Samsung Biologics became the first in Korea’s history to exceed annual operating profit of 1 trillion won Samsung Biologics, founded in 2011, recorded 66 billion won in an operating profit in 2017, making it the first time the company has generated a surplus.

 

It generated 91.7 billion won in 2019; however, in 4 years it expanded 12 times.

 

Samsung Biologics’ yearly sales figure (left) and operating profit (right) (unit: 100 million won, graph by Financial Supervisory Service).

Samsung Biologics focuses primarily on Contract Manufacturing Organization (CMO) and Contract Development Organization (CDO) services for Active Pharmaceutical Ingredients (APIs) and biopharmaceuticals.

 

Currently, the company operates a total of four biopharmaceutical manufacturing facilities.

 

Samsung Biologics has enhanced its CMO capacity through the partial operation of these four factories, attaining the world’s largest production capacity (240,000 liters) in the category of a single manufacturing facility within 23 months of launching the factory in October 2022.

 

“We have reached the highest quarterly sales in our history, primarily due to the revenue generated from the fourth facility’s operation, enhanced operational efficiency in the existing first to third facilities, increased sales volume at Samsung Biologics, and the launch of new products,” the company explained.

 

In the previous year, they reported the total value of orders of 3.5 trillion won, contributing to a cumulative value of orders of approximately $12 billion.

 

Furthermore, they have successfully secured contracts with 14 out of the top 20 global pharmaceutical companies as their customers.

 

Samsung Biologics is actively responding to the increasing demand for biopharmaceuticals by constructing its fifth facility, which commenced in April last year and is scheduled for completion by April 2025.

 

This fifth facility is strategically designed, incorporating the best practices from facilities 1 to 4, and will have a production capacity of 180,000 liters, successfully expanding the company's total production capacity to 780,000 liters.

 

As part of its portfolio expansion plan, Samsung Biologics is proactively investing in Antibody-Drug Conjugate (ADC) production.

 

The company is currently in the process of constructing manufacturing facilities for ADC production, with a target for completion within this year.

 

Samsung Biologics has also invested in ‘AimedBio,’ a Korean company possessing advanced technology for ADC, and in the Swiss company ‘Araris Biotech’ through the ‘Life Sciences Fund’ it established with Samsung C&T.

 

Samsung Biologics has established a business office in New Jersey, a hub for major pharmaceutical companies, to use it as a communication channel with customers.

 

They plan to further expand into strategically important overseas locations to build a global order network and enhance their competitiveness in terms of sales capabilities.

 

Samsung Biologics' subsidiary, Samsung Bioepis, has recorded a significant milestone by surpassing 1 trillion won in sales, reporting 1.203 trillion won, representing an 8% increase from the previous year.

 

However, its operating profit decreased by 11%, reaching 205.4 billion won.

 

In April 2022, Samsung Biologics incorporated Samsung Bioepis as its 100% subsidiary, and the performance of Samsung Bioepis is now reflected in Samsung Biologics' results.

 

During that period, Samsung Biologics acquired 1,034,185,2 shares of Samsung Bioepis stock, previously owned by Biogen, for 2.7655 trillion won, officially transitioning Samsung Bioepis into a 100% subsidiary of Samsung Biologics.

 

Currently, Samsung Bioepis sells seven biosimilars, including treatments for autoimmune diseases in the United States, such as ‘Hadlima,’ a biosimilar to ‘Humira,’ and treatments for rare blood disorders in Europe, such as ‘Epysqli,’ a biosimilar to ‘Soliris.’ Samsung Bioepis plans to focus on expanding product sales in the global market throughout this year.

 

They plan to finalize the development of their follow-up biosimilar pipeline and prepare for a significant advancement in future businesses, such as ADC research.

 

Samsung Biologics has projected its sales for this year to be 4.1564 trillion won.