Pharmaceutical and Bio Companies Show Strong Q3 Performance... Boosted by Technology Exports and COVID-19

Celltrion Operating Profit Up Over 80%·Samsung Biologics Nears 1 Trillion Club
GC Green Cross Vaccine Sales Rise... Record Quarterly Performance

[Asia Economy reporters Sojeong Seo and Hyunui Jo] In the third quarter of this year, major pharmaceutical and biotech companies posted strong earnings, driven by the impact of COVID-19 and robust technology exports. In particular, companies primarily dealing with flu vaccines recorded their highest-ever performance, and as companies reduced events and shifted to emergency management systems due to the COVID-19 situation, costs decreased, positively affecting earnings.

Celltrion Expands Sales of Remsima SC and Truxima in the U.S.

According to securities information provider FnGuide on the 3rd, Celltrion's estimated operating profit on a consolidated basis for the third quarter of this year is 190.3 billion KRW, expected to grow by over 80% compared to the same period last year, marking high growth. The consensus for sales revenue from securities firms is 461.1 billion KRW, expected to show significant growth compared to the previous year.

Celltrion continues its growth through expanded sales of Remsima SC and increased market share of Truxima in the U.S. Remsima SC obtained approval for IBD (Inflammatory Bowel Disease) indications in Europe last July, allowing additional prescriptions beyond existing rheumatoid arthritis, which is expected to positively impact future performance. Additionally, Celltrion signed a supply contract worth 115.6 billion KRW for Teva's migraine treatment Azovi, which could add about 50 billion KRW in sales in the third quarter. The COVID-19 situation led to cost reductions, affecting earnings positively. Minjeong Seon, Senior Research Fellow at Hana Financial Investment, said, "Celltrion reduced various event expenses due to the COVID-19 pandemic and controlled costs by switching to an emergency management system."

Samsung Biologics Surpasses Last Year's Cumulative Third Quarter Performance

Samsung Biologics has entered the 1 trillion KRW club this year. Samsung Biologics posted sales of 274.6 billion KRW and operating profit of 56.5 billion KRW in the third quarter, up 49% and 139% respectively from the same period last year. The cumulative performance up to the third quarter recorded sales of 789.5 billion KRW and operating profit of 200.2 billion KRW, exceeding last year's total sales of 701.6 billion KRW and operating profit of 91.7 billion KRW, due to improved factory utilization rates and reduced cost ratios. This marks a strong performance as the cumulative sales and operating profit for the third quarter surpassed last year's full-year figures.

At the end of last month, Samsung Biologics opened a 612,000-pyeong (approximately 2 million sq ft) contract development (CDO) research and development (R&D) center in San Francisco, the largest bio-cluster in the U.S., marking its first overseas expansion since its establishment in 2010. Next year, it plans to expand into the U.S. East Coast and Europe. A Samsung Biologics official stated, "We announced plans to expand Plant 4 in August, and after the groundbreaking ceremony at the end of this year, partial production is scheduled to begin by the end of 2022," adding, "Establishing a base in the birthplace of the bio industry, where over 2,500 global biotech companies are concentrated, will accelerate synergy in the future."

GC Green Cross posted its highest-ever quarterly performance in the third quarter as vaccine business sales surged. The vaccine business, its core segment, performed well, with operating profit for the third quarter increasing by 37.1% year-on-year to 50.7 billion KRW. This exceeds last year's full-year figure and is the highest quarterly figure in six years. Sales rose 14.5% to 419.6 billion KRW, marking the largest quarterly sales ever.

Yuhan Corporation, which licensed out a non-alcoholic steatohepatitis candidate to Boehringer Ingelheim last year, recorded an operating profit of 24.7 billion KRW in the third quarter, up 143.1% year-on-year. Sales increased 9.6% to 416.6 billion KRW. Chong Kun Dang also posted a 139.5% year-on-year increase in third-quarter operating profit to 48.5 billion KRW, with sales rising 27.5% to 357.5 billion KRW.

This content was produced with the assistance of AI translation services.