Samsung Biologics Approaching '4 Trillion Won Annual Sales'... Achieves Highest Half-Year Sales

First Half Sales 1.6 Trillion
2Q Also 866.2 Billion, Record High
Market Expects "Annual Sales of 4 Trillion Next Year"

Expecting Orders for Dementia and Obesity Treatments
Production Capacity Achieves 'Super Gap'

Samsung Biologics has succeeded in achieving its highest-ever performance for the first half of the year. In addition to the increase in consolidated sales due to the full acquisition of Samsung Bioepis, Samsung Biologics also grew 37% year-on-year on a standalone basis. In particular, there is even analysis suggesting that if the full operation effect of Plant 4 kicks in during the second half, quarterly sales could reach 1 trillion KRW, leading to expectations that the company could soon surpass annual sales of 3 trillion KRW and even reach 4 trillion KRW.

Half-year sales surpass '1.5 trillion'... 'Annual sales of 4 trillion' also within sight

On the 26th, Samsung Biologics announced that its consolidated sales for the second quarter of this year were 866.185 billion KRW, with an operating profit of 253.439 billion KRW. Compared to the same period last year, sales increased by 33.0% and operating profit by 49.4%. For the entire first half, sales reached 1.5871 trillion KRW and operating profit 445.181 billion KRW, surpassing 1 trillion KRW in half-year sales for the first time last year and now successfully exceeding 1.5 trillion KRW.

John Rim, CEO of Samsung Biologics, is speaking at a press conference held in Boston, Massachusetts, USA.
[Photo by Lee Chun-hee]

Even excluding the acquisition effect of Samsung Bioepis in April last year, the standalone performance continued to grow. For the second quarter, sales were 637.2 billion KRW and operating profit 254.1 billion KRW, showing growth rates of 27% and 48%, respectively. A Samsung Biologics official explained, "Sales and operating profit increased significantly due to large-scale long-term orders and maximizing efficiency through full operation of Plants 1 to 3," adding, "The operating profit margin for the second quarter also reached 39.9%."

Samsung Biologics is continuing its rapid growth, having already achieved record-high annual order intake. On the 7th, it secured an additional contract with Novartis, bringing the cumulative order amount to 1.79907 billion USD (approximately 2.2338 trillion KRW). Since CEO John Rim took office, the company has smoothly secured global big pharma clients, now counting 13 of the top global pharmaceutical companies as customers. Recently, it has secured long-term contracts lasting 6 to 7 years, laying the foundation for stable sales.

Aerial view of Samsung Biologics Plant 4 in Songdo, Incheon [Photo by Samsung Biologics]

With the full-scale operation of Plant 4 in the second half, sales this year are expected to exceed 3.5 trillion KRW. In April, Samsung Biologics raised its operating performance forecast for this year from the initially expected 10-15% growth to 15-20%. The company projects sales between 3.4514 trillion and 3.6016 trillion KRW this year.

The era of 'quarterly sales of 1 trillion KRW' is also possible. The securities industry estimates Samsung Biologics' sales for the fourth quarter this year at 1.0428 trillion KRW. In the relatively smaller domestic pharmaceutical and bio industry compared to the global scale, surpassing annual sales of 1 trillion KRW classifies a company as a large enterprise. Samsung Biologics was the first in the industry to achieve 'annual sales of 3 trillion KRW' last year and continues to set new records consecutively. The securities industry expects Samsung Biologics' annual sales to surpass 4 trillion KRW next year. This means the company can even aim for the dream figures of 'annual sales of 4 trillion KRW and annual operating profit of 1 trillion KRW.'

Responding with overwhelming production capacity gap amid growth in dementia and obesity treatments

Another growth driver expected for Samsung Biologics is the emergence of new markets. Biogen and Eisai’s 'Leqembi' (generic name lecanemab) recently received formal approval from the U.S. Food and Drug Administration (FDA), and Eli Lilly’s 'Donanemab' has entered the FDA approval application process, signaling the opening of the Alzheimer’s antibody treatment market. If Samsung Biologics succeeds in securing contract manufacturing organization (CMO) orders for these drugs, significant sales growth is anticipated.

Biogen and Eisai's Alzheimer's dementia treatment 'Leqembi (generic name: Lecanemab)' [Image source=AP Yonhap News]

The obesity treatment market, which is experiencing a shortage due to rapidly increasing demand outpacing production capacity, is also a promising factor. However, drugs dominating the market such as Novo Nordisk’s 'Wegovy' (semaglutide) and Eli Lilly’s 'Mounjaro' (tirzepatide) are peptide-based drugs, as indicated by their generic names ending in '-tide.' These do not align with Samsung Biologics’ portfolio, which mainly produces antibody drugs, so immediate effects are not expected.

However, with Amgen developing 'AMG-133,' which combines antibodies and peptides, and Eli Lilly acquiring Versanis to secure 'Vimagrumab,' an antibody drug in Phase 2 clinical trials, the development of antibody-based obesity treatments is becoming active, suggesting that ripple effects may follow.

Aerial view of Samsung Biologics' 2nd Bio Campus in Songdo, Incheon [Photo by Samsung Biologics]

Additionally, Samsung Biologics plans to secure a total production capacity of 1,324,000 liters by 2032 with its second bio campus. Major competitors such as Lonza, Boehringer Ingelheim, and WuXi Biologics have also joined the production expansion race. Seungmin Kim, a researcher at Mirae Asset Securities, said, "Although there are concerns about oversupply, currently there is no reason to worry," explaining, "Most of WuXi’s projects are clinical-stage contract development and manufacturing organization (CDMO), and Fujifilm’s antibody CMO business is still in its early stages, so it is difficult to match Samsung Biologics’ track record or cost competitiveness."

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