Samsung BioLogics, highest performance in the first quarter… Sales approaching 1 trillion won By MoneyS

Samsung BioLogics (KS:) recorded its highest ever sales and operating profit in the first quarter due to increased sales contribution from Plant 4 and expansion of biosimilar business.

Samsung BioLogics announced on the 24th that it recorded KRW 946.9 billion in consolidated sales and KRW 221.3 billion in operating profit in the first quarter of this year. Compared to the same period last year, sales and operating profit increased by 31% and 15%, respectively.

On a separate basis, sales reached KRW 669.5 billion, a 13% increase over the same period last year. On the other hand, operating profit decreased by 1% to KRW 232.7 billion due to increased costs due to depreciation costs at Plant 4, which began full operation.

Samsung Bioepis’ first quarter sales recorded 280.1 billion won, a 31% increase compared to the same period last year, due to increased sales of biosimilar products in overseas markets such as the U.S. and Europe. Operating profit rose 26% to KRW 38.1 billion, based on external growth resulting from increased product sales.

Samsung BioLogics forecast quarterly performance growth due to a gradual increase in the operation rate of Plant 4 and maintained the annual sales growth forecast at 10-15% compared to the previous year as previously presented. Meanwhile, Samsung BioLogics is in a stable financial position with a debt ratio of 65.1% and a borrowing ratio of 15.0% on a consolidated basis.

In the first quarter, the company signed a series of contract manufacturing (CMO) contracts with global pharmaceutical companies such as UCB and MSD, and signed a contract development (CDO) contract with RigaChem Biosciences to collaborate in the development of ADC (antibody-drug conjugate) treatments. It is proving its development and production (CDMO) competitiveness.

Since its founding, the total accumulated orders have exceeded $12.5 billion, and a total of 14 of the top 20 global pharmaceutical companies are secured as customers. In order to quickly respond to the increasing demand for biopharmaceuticals, the 5th plant is being built with the goal of completion in April 2025.

Factory 5 was designed as a 180,000-liter production plant that integrates the best practices of factories 1 to 4. When Factory 5 is completed, Samsung BioLogics will secure a total production capacity of 784,000 liters.

In terms of portfolio expansion, we are actively investing in the ADC field. A dedicated ADC production facility is being built with the goal of completion by the end of this year. Last March, we invested in Brick Bio, a US-based company with proprietary ADC technology, through the ‘Samsung Life Science Fund’ established with Samsung C&T.

Samsung Bioepis also has 11 types of biosimilar products and pipelines. It is expected to maintain continuous growth within the year through follow-up product approval and launch.

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The company plans to accelerate clinical trials for the Keytruda biosimilar through an ‘overlap’ strategy that conducts global clinical trials in phase 1 and 3 simultaneously.

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