Samsung Biologics Surpasses 1 Trillion Won in First Half Sales for the First Time Since Establishment

Samsung Bioepis Reflects First Consolidated Earnings After Full Acquisition of Shares
Individual Sales Surpass 1 Trillion Won
Rapid CMO Growth Boosts 3rd Plant Utilization and Exchange Rate Impact
Increased Sales of Bioepis Biosimilar Products
"A True Leap to a Global Bio Company"

Samsung Biologics Plant 3 exterior view.

[Asia Economy Reporter Lee Gwan-ju] Samsung Biologics has surpassed 1 trillion KRW in sales for the first time in its history during the first half of the year, driven by the rapid growth of its CMO (Contract Manufacturing Organization) business.

Samsung Biologics announced on the 27th that it recorded consolidated sales of 651.4 billion KRW and an operating profit of 169.7 billion KRW in the second quarter of this year.

Consolidated sales for the first half reached 1.1627 trillion KRW, with an operating profit of 346.1 billion KRW. Excluding the performance of its subsidiary Samsung Bioepis, Samsung Biologics’ standalone sales for the first half also exceeded 1 trillion KRW, reaching 1.015 trillion KRW. Since 2019, Samsung Biologics’ standalone first-half sales have grown at a compound annual growth rate (CAGR) of 78.8% over three years.

In April, Samsung Biologics acquired all shares of Samsung Bioepis from Biogen, incorporating it as a consolidated subsidiary. Accordingly, from the acquisition date onward, Samsung Biologics has reported consolidated results including Bioepis’s profits and losses.

A view of the Samsung Biologics promotional booth installed at the world's largest bio exhibition, "BIO International Convention 2022 (BIO USA)," held last month in San Diego, USA.

Samsung Biologics’ second-quarter standalone sales were 503.7 billion KRW, with an operating profit of 171.9 billion KRW. Although the impact of a 'slow down (scheduled maintenance)' was reflected from the previous quarter, sales increased by 22.2% and operating profit by 3.2% year-on-year due to the operating rate of Plant 3 and exchange rate gains.

Samsung Bioepis recorded sales of 232.8 billion KRW and an operating profit of 58.5 billion KRW in the second quarter. Sales increased by 24.2% and operating profit by 95.7% year-on-year, driven by increased sales volume of biosimilar products in global markets such as the US and Europe.

Following the share acquisition, Samsung Biologics’ consolidated assets as of the second quarter changed to 15.6595 trillion KRW, equity to 8.4799 trillion KRW, and liabilities to 7.1796 trillion KRW. However, the debt ratio remains stable at 84.7%, and the borrowings ratio at 26.2%, maintaining a sound financial position.

Samsung Biologics is accelerating its leap into a global integrated bio company by combining its position as the world’s largest CDMO (Contract Development and Manufacturing Organization) with the biopharmaceutical development and clinical research capabilities secured through the acquisition of Samsung Bioepis.

In the CMO sector, a cumulative total of 73 orders were recorded in the first half of this year, and through pre-order activities for Plant 4, contracts were signed for seven products from five companies. The CDO (Contract Development Organization) sector also recorded a cumulative total of 95 orders. Notably, contracts were consecutively signed with major pharmaceutical companies such as Janssen, Merck, GSK, Eli Lilly, and Novartis, achieving a cumulative order amount of 7.9 billion USD.

John Lim, CEO of Samsung Biologics.

Currently, all plants (Plants 1, 2, and 3) are operating at full capacity, and construction of Plant 4 (256,000 liters) is progressing smoothly with a goal of partial operation by October this year. Once Plant 4 is completed, Samsung Biologics will solidify its position as the undisputed global No. 1 CDMO company, accounting for 30% of the world’s CMO production volume. Recently, a land sale contract was also signed for the construction of a second bio campus in Songdo, Incheon.

Samsung Bioepis has also shown continuous sales growth since its establishment through product sales revenue in global markets, milestone payments for development achievements, and a robust business portfolio. The autoimmune disease treatment SB4 (Enbrel biosimilar), launched in Europe in 2016, has surpassed the original drug to become the market leader locally. Last month, the ophthalmic disease treatment SB11 (Lucentis biosimilar) was launched in the US, raising expectations for continued sales growth in the second half of the year.

In addition to six commercialized products, Samsung Bioepis is developing four follow-up pipelines. Currently, it is strengthening its position as a leading company in the global biosimilar industry by progressing through product approval review (SB12), clinical completion (SB15), and Phase 3 clinical trials (SB16 and SB17).

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