Samsung Biologics has blowout Q3, revenues hit new high

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Samsung Biologics has blowout Q3, revenues hit new high

Published: 25 Oct. 2023, 18:13

SARAH CHEA
chea.sarah@joongang.co.kr

Samsung Biologics CEO John Rim speaks during a press event at its headquarters in Incheon. [SAMSUNG BIOLOGICS]

Samsung Biologics posted a consensus-beating 320 billion won ($240 million) in operating profit in the third quarter, with revenues surpassing 1 trillion won for the first time in its history.

The Korean company said Wednesday it reported 318.5 billion won in operating profit during the July-to-September period, down 2 percent on year, but still overshooting the market consensus of 294 billion won compiled by FnGuide.

Quarterly revenues rose 18 percent to 1.03 trillion won, a record high since the firm was founded in 2011. It far exceeded the market expectation of 961 billion won.

Net profit jumped 86.1 percent to 240 billion won.

Samsung Biologics attributed the increasing contract manufacturing organization (CMO) contracts to the active operation of the fourth factory in Songdo, Incheon, behind the strong performance, which started partial operation in October last year. The plant is to have a capacity of 240,000 liters (253,000 quarts), the world’s largest single pharmaceutical manufacturing facility.

CMOs refer to companies that provide drug manufacturing services on a contract basis.

Samsung Biologics recently signed massive CMO deals with global firms including Pfizer and Novartis, which took its total contract value to 2.73 trillion won so far this year.

It has 14 out of 20 world's biggest pharmaceutical companies as clients.

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

Samsung Bioepis, a biosimilar maker fully owned by Samsung Biologics, reported revenue down 3 percent on year to 262.1 billion won in the third quarter. Its operating profit fell 37 percent in the same period to 49.2 billion won.

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.

Samsung Biologics shares closed down 2 percent to 723,000 won on Wednesday.

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