Samsung Biologics beats expectations as net jumps 141%

Samsung Biologics' third factory in Songdo, Incheon. [SAMSUNG BIOLOGICS]

Samsung Biologics beat market expectations in the first quarter, reporting a net profit of 146.9 billion won ($116 million), a 141 percent jump on year.

The consensus as compiled by FnGuide was 122 billion won.

First quarter revenue was 511.3 billion won, an all-time high and a 96.1 percent year-on-year increase, while operating profit rose 137.5 percent to 176.4 billion won, also a record.

Analyst expectations for revenue were 479 billion won and for operating profit 157.6 billion won.

The Songdo, Incheon-based company said "high operation rates of the three plants and the increased number of orders" were the biggest contributors.

Samsung Biologics said 2022 will be a big year for global growth as it expands its portfolio into biosimilars and new drug development.

On April 20, the company agreed to acquire the 50 percent minus one share of Samsung Bioepis it didn't already own for $2.3 billion in a deal with Cambridge, Massachusetts-based Biogen.

"We can now make independent and quick decisions regarding Samsung Bioepis, which will allow us to proceed with our medium- and long-term growth strategies such as new pipeline development and new drug development more rapidly," Samsung Biologics said in a statement.

Samsung Biologics is the world's largest contract and development manufacturing organization in terms of capacity. It is currently building a fourth plant in Songdo, Incheon, which is likely to bring production capacity to 620,000 liters.

Partial operations of the fourth plant will start in October, and Samsung Biologics has already signed deals for five products with three global pharmaceutical companies and is in talks with 20 more firms for 30 additional drugs.

It has purchased a site for a fifth factory, which the company aims to break ground on in the first half. It is also in the process of purchasing land in Songdo for additional facilities, with the aim of closing the deal in the second quarter. The site will be able to accommodate up to four new plants.

Samsung Biologics rose 0.75 percent in trading Wednesday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]