Samsung Biologics posts record profits after string of contract wins

Industry

Published: 24 Jan. 2024, 16:18 Updated: 24 Jan. 2024, 17:14

Samsung Biologics posts record profits after string of contract wins

Samsung Biologics CEO John Rim speaks during the annual 42nd J.P. Morgan Healthcare Conference at the main Grand Ballroom in the Westin St. Francis Hotel in San Francisco, California. [SAMSUNG BIOLOGICS]

Samsung Biologics, a biopharmaceutical contract manufacturer, posted an all-time high operating profit of 1.11 trillion won ($829.3 billion) last year, up 13.22 percent on year, according to the company’s regulatory filing Wednesday.

The figure beat the market expectation of 1.08 trillion won compiled by market tracker FnGuide.

It is the first time that the contract development and manufacturing organization (CDMO) — or any Korean biotech or pharmaceutical company — has logged an annual operating profit exceeding the 1-trillion-won mark.

Samsung Biologics’ net profit rose 7.47 percent to 857.7 billion won, falling short of the market forecast of 823.9 billion won.

Sales rose 23.1 percent to 3.69 trillion won, also a record, slightly above the analyst forecast of 3.68 trillion won.

In the fourth quarter alone, the company logged an operating profit of 350 billion won, up 11.88 percent compared to the same period in the previous year. The quarterly sales rose 11.18 percent to 1.07 trillion won.

Samsung Biologics cited its strong sales performance in 2023 for the active operation of its massive 240,000-liter (253,000-quarts) fourth factory in Songdo, Incheon, its upped production efficiency and a sales increase at its biosimilar subsidiary Samsung Bioepis.

The upbeat performance arrived as the Incheon-based company racked up a string of major contract wins with big pharma through 2023.

Samsung Biologics signed massive CMO deals with big pharma companies including Novartis and Pfizer last year. The total value of orders the company garnered in 2023 amounts to a record 3.5 trillion won.

It counts 14 of the world's top 20 pharmaceutical companies among its clients.

This year, Samsung Biologics aims to expand its business into the antibody-drug conjugate (ADC) field, arguably one of the most sought-after modalities in the industry.

Samsung Biologics CEO John Rim said that the company is "building an ADC facility that will be coming online at the end of this year,” in his presentation during this year's J.P. Morgan Healthcare Conference held in San Francisco in early January.

Samsung Bioepis, a biosimilar maker fully owned by Samsung Biologics, posted an annual operating profit of 205.4 billion won, down 11 percent from the previous year, which the company attributed to the base effect from a milestone payment in 2022, and sales of 1.02 trillion won, up 8 percent on-year.

Samsung Bioepis has a total of seven biosimilar products currently available for sale in the global market.

Samsung Biologics' share slid 1.38 percent on Wednesday, to close at 788,000 won on the main Kospi bourse.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]