SK Bioscience Reports 156.8 Billion KRW in Q4 Sales, Up 70% Year-on-Year

SK Bioscience announced its first consolidated financial results after acquiring the German company IDT Biologika. Despite continuing operating losses due to ongoing R&D (research and development) investments for the future, the company showed significant growth in scale with quarterly sales increasing by more than 70% compared to the same period last year, also demonstrating the potential for performance improvement.

On the 5th, SK Bioscience disclosed that its consolidated sales for the fourth quarter of last year were approximately KRW 156.8 billion, with an operating loss of KRW 50.8 billion. On an annual basis, sales amounted to KRW 267.5 billion, with an operating loss of KRW 138.4 billion. The performance of IDT Biologika (IDT), whose acquisition was completed in October last year, was fully reflected on a consolidated basis, resulting in about a 70% increase in fourth-quarter sales compared to the same period last year. Although the operating loss widened, this was due to bold investments in facilities and R&D for future growth, including the construction of the Songdo R&PD Center, expansion of the Andong L House, and entry into phase 3 clinical trials for the pneumococcal vaccine.

SK Bioscience plans to significantly improve its financial performance this year through IDT’s turnaround to profitability and increased sales of its own vaccines.

Since the acquisition, IDT has been actively improving its business structure to enhance management efficiency and is also working to increase utilization rates through new business orders. SK Bioscience aims to achieve IDT’s turnaround within the year through operational efficiency strategies focused on productivity improvement and the development of high value-added products.

SK Bioscience’s key products, including influenza, shingles, and varicella vaccines, are also targeting increased sales through overseas exports this year. The influenza vaccine Skycellflu received its first Southern Hemisphere product approval in Thailand last year and is preparing for export, while Skyzoster, the domestic market leader in shingles vaccines by vaccination volume, is targeting overseas markets mainly in Southeast Asia. The varicella vaccine Skyvaricella continues to be stably supplied in international procurement markets such as PAHO (Pan American Health Organization).

Strengthened strategic cooperation with Sanofi also raises expectations for performance improvement.

SK Bioscience expanded its domestic joint sales and distribution agreement with Sanofi this year to include the RSV preventive antibody injection Beyfortus and the hepatitis A vaccine Avaxim, following last year’s five vaccines including the hexavalent combination vaccine Hexaxim. Notably, Beyfortus is the only product available for vaccination of all infants at the time of their first RSV infection, expected to bring changes to the RSV preventive drug market, which had previously been limited to high-risk infants. Additionally, the hexavalent vaccine Hexaxim was officially introduced into the National Immunization Program (NIP) this year, expanding its market.

Regarding the next-generation pneumococcal vaccine contract signed with Sanofi at the end of last year, an upfront payment of EUR 50 million (approximately KRW 75.5 billion) and milestone payments of up to EUR 300 million (approximately KRW 452.9 billion) to be received in stages upon development completion are expected to be recognized as revenue starting this year.

Alongside multifaceted efforts to improve short-term performance, SK Bioscience plans to continue sustained R&D investment and growth engine discovery efforts, including completing global phase 3 dosing of the 21-valent pneumococcal vaccine this year and actively initiating development of a next-generation pneumococcal vaccine more advanced than the 21-valent.

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