Pharma-Bio Q3 Earnings: 'Structural Improvements' Make the Difference

The third-quarter performance of major domestic pharmaceutical and biotech companies diverged depending on whether they had successfully undergone structural improvements. Despite ongoing uncertainties in the global market, companies that enhanced production efficiency and expanded their new product lines achieved record-breaking results.

According to the industry on November 7, Samsung Biologics posted its highest-ever quarterly results in the third quarter of this year, with sales of 1.6602 trillion won and operating profit of 728.8 billion won. The company maintained stable growth, driven by full operation of its first to fourth plants, expanded global sales by Samsung Bioepis, and favorable exchange rates. The newly operational fifth plant ramped up stably, increasing total production capacity to 784,000 liters, with plans to expand beyond 1.32 million liters by 2032. The accumulated order value for this year has already reached 5.2435 trillion won, nearly matching last year’s annual total. With 17 of the world’s top 20 pharmaceutical companies as clients, Samsung Biologics has established itself as a global production hub in the bio sector.

Celltrion also achieved its highest-ever quarterly results, with sales of 1.029 trillion won and operating profit of 301.4 billion won. High-margin new products fueled this performance. Sales of new biosimilars such as Remsima SC, Yuflyma, and Zymfentra rose by 52% year-on-year, accounting for more than half of total sales. Yuflyma’s cumulative sales this year reached 398.7 billion won, already surpassing last year’s annual figure. The cost ratio dropped to the low 30% range, and the operating margin hit a post-merger high of 29.3%.

Hanmi Pharmaceutical also continued solid growth, driven by its flagship combination drugs and technology transfer deals. Third-quarter sales were 362.3 billion won, and operating profit was 55.1 billion won, up 0.1% and 8% year-on-year, respectively. Upfront payments from the technology transfer of Ensacuita to Gilead improved profitability, while stable growth of key products such as Rosuzet, the Amosartan family, and the Esomezol family provided support. Beijing Hanmi recorded sales of 94.1 billion won and operating profit of 23.6 billion won during the off-season, growing by 11.6% and 57.6%, respectively.

Yuhan Corporation saw third-quarter sales of 551.1 billion won and operating profit of 24.1 billion won, down 5.8% and 55.7% year-on-year, respectively. The base effect from milestone payments related to the U.S. commercialization of Leclaza (lazertinib) in the third quarter of last year was significant, but with no milestone this year, a reverse base effect made the operating profit appear to have dropped sharply. A Yuhan official stated, “Other sectors, including Leclaza sales, are still growing,” and added, “In the fourth quarter, we expect to receive a milestone payment of 45 million dollars (about 65.2 billion won) from the commercialization of Leclaza in China, which should improve the numbers.”

Chong Kun Dang saw sales rise 4.6% year-on-year to 427.4 billion won, but operating profit fell 18.7% to 20.5 billion won. Leading products such as Prolia, Atozet, and Fexuclu drove growth, but the company could not escape the low-margin structure of imported drugs. However, the company continues to pursue portfolio diversification through ongoing R&D investment, as seen in the case of CKD-510, which was licensed out to Novartis in November 2023 for 1.7 trillion won.

GC Green Cross surpassed quarterly sales of 600 billion won for the first time since its founding, but operating profit fell 26.3% to 29.2 billion won. The immunoglobulin product Aliglo grew 117% year-on-year, driving top-line growth, but profit declined due to the opening of U.S. plasma centers and one-off costs following the acquisition of ABO Plasma. Although profitability worsened in the short term, this is interpreted as an investment to expand the global plasma value chain.

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