Samsung Biologics logs consensus-beating net profit in second quarter

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Samsung Biologics logs consensus-beating net profit in second quarter

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

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

Samsung Biologics logged a consensus-beating net profit of 152 billion won ($116 million) in the second quarter, up 25.1 percent on year.
 
The market expectation was 114.3 billion won as compiled by FnGuide.
 
First quarter revenue was 651.4 billion won, a 58.1 percent year-on-year increase, while operating profit rose 2 percent to 169.7 billion won.  
 
Both figures far exceeded the market consensus, which was 468.3 billion won for revenue, and 150.6 billion won for operating profit.
 
This quarter was the first time the company included the profit of Samsung Bioepis in its earnings report. Samsung Biologics now owns 100 percent of the biosimilar company.
 
Songdo, Incheon-based Samsung Biologics cited "the higher operation rate of the third plant” and “weakness of Korea's currency against the dollar” as the reasons for the strong results.
 
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. It has many global big pharmaceutical companies as customers, including AstraZeneca, GlaxoSmithKline, Eli Lilly and Moderna.
 
Samsung Bioepis reported 58.5 billion won in operating profit in the second quarter, a 95.7 percent year-on-year increase. Revenue rose 24.2 percent to 232.8 billion won. 
 
Samsung Bioepis has a total of 10 biosimilar products and candidates. Six — three autoimmune treatments and three oncology treatments — are being used globally, while four candidates are currently in Phase 3 clinical trials.
 
Biosimilars, according to the FDA, are products that are approved based on proof that they are highly biologically similar to other FDA-approved products. The drugs have no clinically meaningful differences in terms of safety or effectiveness from the reference product, but they cost less.

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