In an official report released today, the division of Samsung Group that specializes in biotechnology, Samsung Biologic has revealed that it has recorded over 1 trillion, about $761 million in sales in the first six months of this year.
According to the biotech firm, its sales in April-June were 651.4 billion won, up 59 percent year on year, and its operating profit was 169.7 billion won, up 1.75 percent year on year. Net income increased by 25.11 percent to 152 billion won.
The robust performance of its new subsidiary Samsung Bioepis, a biosimilar developer purchased in April from Biogen, a U.S. multinational biotech firm, underpinned the all-time high in sales. In the April-June period, Biologics’ operating profit nearly doubled due to sales of Bioepis biosimilars.
Global multinational pharmaceuticals and biotech firms such as Janssen, Merck, GSK, Eli Lilly, and Novartis are among the firm clients, having signed business deals with the firms in the first six months of this year. Samsung Biologics is strengthening its research and development (R&D) activities, which will help it maintain its lead in CDMO capabilities.
The thriving CDMO business will be expanded further, as evidenced by the July 18 purchase of 357 million square meters of land in Songdo, Incheon Free Economic Zone, to build its second bio campus. Its contract manufacturing organization (CMO) business is also thriving. Since the firm’s inception in 2011, 73 CMO orders have been secured, bringing the total order value to $7.9 billion as of June.
Manufacturing plants 1, 2, and 3 of the company are fully operational. Plant 4 is being built, with plans to begin partial operation in October of this year. When the four plants are fully operational, Samsung Biologics will account for 30% of global CMO production.
However, local brokerages predict that Biologics will make an even bigger profit in the coming months, thanks to the rapid depreciation of the Korean currency against the US dollar, which will offset lower production output due to manufacturing plant maintenance in the first six months.
Speaking on the achievement an official of the firm said they were able to achieve a strong performance as a result of rising global client demand and the rapid expansion of the new subsidiary. Recall that this month, we reported that the biotech firm disclosed its plans to create 400 new jobs per year as it signs a $323m land purchase deal to build a second campus in Songdo International City.