Korean Pharmaceutical and Biotech Firms' Q1 Results Driven by Strong Export Performance

Strong Export-Driven Results
for Companies like Samsung Biologics and Celltrion

In the first quarter of this year, the domestic pharmaceutical and biotech industry demonstrated qualitative growth driven by exports. This was largely due to record-breaking performances from major biotech companies such as Samsung Biologics and Celltrion, as well as solid growth from traditional pharmaceutical firms. Latecomers like SK Biopharm, which has established a direct sales system in the United States, and Alteogen, which possesses proprietary new drug platform technology, also made significant strides.

According to the pharmaceutical and biotech industry as of May 12, Samsung Biologics posted sales of 1.2571 trillion won in the first quarter of this year, a 25.8% increase from the same period last year. Operating profit surged by 35% to 580.7 billion won, marking the largest first-quarter figure since the company’s founding. Full operation of Plants 1 through 4 boosted results, and the company expanded its global production base in earnest after completing the acquisition of a manufacturing facility in Rockville, United States, in March. Additionally, through its collaboration with Eli Lilly, Samsung Biologics established the 'Lilly Gateway Labs' hub in Songdo, further strengthening its open innovation capabilities. However, following a labor-management strike earlier this month, which is estimated to have resulted in losses of about 150 billion won, continued negotiations between labor and management after the return to work remain a key management issue going forward.

Celltrion also reported strong growth in the first quarter, with consolidated sales of 1.145 trillion won and operating profit of 321.9 billion won, representing year-on-year increases of 36% and 115.5%, respectively. The sharp rise was attributed to a 67% surge in sales of high-profit new product lines such as Omiclone, Zympentra, and Stekima in both European and U.S. markets compared to the previous year. After the merger, the elimination of one-off costs and improved yield pushed the operating margin up to 28.1%. The company has expressed confidence in achieving its targets of 5.3 trillion won in sales and 1.8 trillion won in operating profit this year.

Samsung Bioepis achieved its early-year guidance with first-quarter sales of 454.9 billion won and operating profit of 144 billion won, year-on-year growth rates of 14% and 13%, respectively. Growth was driven by the tenth anniversary of its Enbrel biosimilar in Europe and the launch of new products in the United States. SK Biopharm saw significant results from its direct sales network in the United States, recording sales of 227.9 billion won and operating profit of 89.8 billion won. In particular, operating profit soared by approximately 250% compared to the same period last year, solidifying its break-even structure. This was due to a sharp increase in the number of local patients prescribed Cenobamate, its epilepsy medication.

Among traditional pharmaceutical companies, Yuhan Corporation maintained its top industry position with sales of 526.8 billion won and operating profit of 8.8 billion won. In the second quarter, sales growth is expected to accelerate further as milestone revenue from the European commercialization of Leclaza, a non-small cell lung cancer treatment, will be reflected. Chong Kun Dang posted first-quarter sales of 447.7 billion won and operating profit of 17.6 billion won, up 12.2% and 36.9% year-on-year, respectively. Stable sales of existing key products, coupled with about 50 billion won in additional revenue from the co-promotion of obesity treatment Wegovy, drove external growth. GC Green Cross achieved sales of 435.5 billion won and operating profit of 11.7 billion won, supported by the growth of Aliglo, while Hanmi Pharmaceutical recorded sales of 392.9 billion won and operating profit of 53.6 billion won, maintaining stable profitability.

Alteogen, which possesses subcutaneous injection (SC) formulation technology, achieved sales of 71.6 billion won and operating profit of 39.3 billion won, posting an operating margin of 54.9%. The results reflect the impact of major contracts with GSK and Biogen, and with milestone revenue from the expected expansion of Keytruda SC prescriptions in the United States in the second half of the year, the company is highly likely to achieve its best-ever annual results.

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