SK Bioscience Reports 3Q Sales of 61.6 Billion KRW and Operating Loss Turnaround... "Impact of Investments Including Acquisition of German CDMO"

SK Bioscience announced on the 24th that it recorded sales of 61.648 billion KRW and an operating loss of 39.614 billion KRW based on consolidated financial statements for the third quarter of this year. Compared to the same period last year, sales decreased by 73.4%, and operating profit turned to a loss.

On a cumulative basis for this year, sales amounted to 110.696 billion KRW, with an operating loss of 87.655 billion KRW. Compared to the cumulative third quarter of last year, sales decreased by 60.3%, and operating profit remained in the red.

The company explained that the shift to a loss in the third quarter compared to the same period last year was the result of "active investment for future growth." It stated that it accelerated securing future growth engines by acquiring shares in a total of three global companies in the third quarter alone.

SK Bioscience recently acquired IDT Biologika, a German vaccine and toxin contract development and manufacturing organization (CDMO). Based on over 100 years of expertise and capabilities, IDT operates not only in Germany but also in the United States. Approximately 260 billion KRW was invested, and investments were also made to secure pipeline technology competitiveness in research and development (R&D) by acquiring shares in U.S. companies Sunflower and PinaBioSolution.

With the acquisition process of IDT completed earlier this month, SK Bioscience expects that IDT’s performance will be reflected on a consolidated basis from the fourth quarter, leading to a full-scale expansion of sales and other external growth. The plan includes increasing utilization rates by utilizing IDT Biologika’s idle facilities, expanding the cell and gene therapy (CGT) CDMO market, reducing costs, and improving operational efficiency to achieve an early turnaround to profitability. Through this, the goal is to improve earnings before interest, taxes, depreciation, and amortization (EBITDA) to about 15.5% of sales by next year.

SK Bioscience also plans to increase sales through growth in influenza vaccine sales and five types of Sanofi vaccines sold on consignment, sustained demand for shingles vaccines, and expanded exports of chickenpox vaccines to the Pan American Health Organization (PAHO). Additionally, with ongoing global approvals for major vaccines, the company will aggressively explore overseas sales channels starting next year.

An SK Bioscience official said, "We are rapidly improving our structure with the goal of becoming a global top-tier vaccine and bio company," adding, "We will continuously enhance performance through investment strategies to secure growth engines, thereby increasing corporate value."

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