Samsung Biologics net profit falls 3.5 percent in first quarter

Samsung Biologics CEO John Rim [SAMSUNG BIOLOGICS]

Samsung Biologics logged a weaker-than-expected profit in the first quarter, mainly due to an extraordinary item.

Net profit was at 141.8 billion won ($106.2 million) in the first quarter, down 3.5 percent on year, due in part to a one-off factor stemming from its acquisition of Samsung Bioepis.

It missed the market consensus of 175.6 billion won compiled by FnGuide.

Operating profit stood at 191.7 billion won during the January-to-March period, up 8.7 percent, and in line with analyst expectations of 191.2 billion won.

Revenues jumped 41 percent on-year to 720.9 billion won, beating the market consensus of 716 billion won.

Samsung Biologics noted "stable growth of the contract development and manufacturing organization [CDMO] business," and "the solid performance of Samsung Bioepis."

Samsung Biologics won $400 million more CDMO orders in the first quarter, totaling $9.9 billion.

Samsung Biologics started partial operations of its fourth plant, in Songdo, Incheon, which will have a capacity of 240,000 liters when fully operational in June. It is the world’s largest single pharmaceutical manufacturing facility.

The latest plant will likely bring the company's annual production capacity to 604,000 liters, which Samsung Biologics says is equivalent to nearly 30 percent of the global contract manufacturing market for biopharmaceuticals.

Samsung Biologics will invest 7.5 trillion won in building four new factories in a new manufacturing complex next to its existing plants in Songdo.

Samsung Bioepis reported revenue up 7 percent on year to 213.4 billion won in the first quarter. Its operating profit rose 4 percent in the same period to 36.1 billion won.

Bioepis introduced Byooviz, its biosimilar version of the eye treatment Lucentis, in Germany, Britain and Canada in March. It is set to introduce its biosimilar of Humira, or adalimumab, the world's best-selling drug for autoimmune diseases, including rheumatoid arthritis and Crohn's disease.

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.

Samsung Biologics shares closed up 1.53 percent to 797,000 won on Monday.

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