Samsung Biologics' Record Quarter Driven by Biosimilars Sales
End-to-end CDMO, Samsung Biologics, has reported a record-setting quarter, with a 37% increase in sales, driven primarily by its biosimilars unit, Samsung Bioepis. The company achieved significant year-over-year growth, including a 107% rise in biosimilars sales, largely due to successful products like Hadlima, a Humira biosimilars, increasing profits by 71%. Aside from positive business results, the company hopes to complete the construction of its standalone ADC facility within this year, with the aim of opening new facilities by April 2025, as the company looks to provide additional capacity to deliver timely services to clients.
Samsung Biologics, a global contract development and manufacturing organization (CDMO), announced today its financial results for the second quarter of fiscal year 2024.
"Our solid performance in the second quarter underscores our steadfast commitment to client satisfaction and delivering high-quality biomedicines," said John Rim, CEO and President of Samsung Biologics. “We continue to achieve steady business growth thanks to our robust partnerships with global pharma and biotech companies, and our steadfast execution of Plant 4 ramp up. We remain well-positioned to meet client needs as we continue to expand capacity and enhance our capabilities.”
SECOND QUARTER 2024 RESULTS
In the second quarter, consolidated revenue reached KRW 1.16 trillion, while operating profit stood at KRW 434.5 billion. On a standalone basis, the company achieved a revenue of KRW 810.2 billion, while operating profit came to KRW 329.2 billion during the same period.
The results were driven by the full utilization of Plants 1 through 3 and the ramp-up of Plant 4 operations. Samsung Biologics also secured contracts with global pharma, partnering with 16 of the top 20 global pharma companies. The company’s cumulative contract volume surpassed USD 13 billion as of June.
In line with the company’s commitment and vision to innovation and growth, Samsung Biologics continued to make strategic investments into diverse modalities. In May, the company made its sixth investment through the Samsung Life Science Fund in Latus Bio, a US-based biotech company specializing in novel gene therapy for central nervous system disorders.
The first half of 2024 saw consolidated revenue of KRW 2.1 trillion and an operating profit of KRW 655.8 billion.
FISCAL YEAR 2024 OUTLOOK
Samsung Biologics is on track to completing the construction of its standalone ADC facility within this year, as part of its multi-dimensional growth strategy. Additionally, Plant 5 is expected to be operational by April 2025 as planned, enabling the company to provide additional capacity to deliver timely services to clients.
On the CDO front, Samsung Biologics continues to launch new innovative platforms to accelerate the development of high-quality biopharmaceuticals. The company also offers customized development solutions, dubbed SelecTailor™, which are tailored to meet the specific needs of clients and support their programs.
As part of efforts to foster emerging biotech companies and seek new growth engines, Samsung Biologics, along with Samsung C&T, Samsung Bioepis, and Samsung Venture Investment, established the Samsung Life Science Fund II in July. The fund will invest in Flagship Pioneering Fund VIII, which is managed by U.S. based biotech investment firm Flagship Pioneering and focuses on investing in artificial intelligence-based drug development platform technologies.
Samsung Biologics remains steadfast in its commitment to embed sustainability across business operations. Last month, the company released its annual ESG report, highlighting its progress in business resilience and sustainability. The company will continue to adhere to global ESG disclosure regulations as well as implement measures to achieve carbon neutrality targets.
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