Samsung Biologics has become the first among domestic pharmaceutical corporations to join the annual sales '4 trillion club.'
Samsung Biologics noted on the 22nd that its consolidated revenue for 2024 is expected to reach 4.5 trillion won, an increase of about 23% compared to the previous year (3.695 trillion won). Operating profit also increased by approximately 19% from the previous year (1.1137 trillion won), reaching 1.3201 trillion won.
This is due to the continued large-scale contract development and manufacturing (CDMO) orders from several global pharmaceutical companies last year, along with increased sales from the 4th factory combined with all operational 1st to 3rd factories. The global market performance of the biosimilar products developed and launched by the subsidiary Samsung Bioepis has also grown. The exchange rate of the won against the dollar is favorable.
Samsung Biologics' standalone annual revenue last year was 3.4971 trillion won, a 19% increase compared to the previous year, while operating profit rose by 10% to 1.3214 trillion won. Samsung Bioepis' standalone annual revenue reached 1.5377 trillion won, up 51% from the previous year, and operating profit surged 112% to 435.4 billion won.
Looking at the fourth-quarter results of last year, Samsung Biologics' consolidated revenue increased by 17% from the same period the previous year to 1.2564 trillion won, while operating profit decreased by 7% to 325.7 billion won. The company explained that the decline in fourth-quarter operating profit was due to increased investments for enhancing CDMO capabilities and research and development (R&D) expenditures crucial for future growth.
Last year, Samsung Biologics signed three contracts for contract manufacturing (CMO) worth 1 trillion won each in major global markets including the United States, Europe, and Asia, exceeding a cumulative order amount of 5 trillion won. The total accumulated order value since its establishment is approximately $17.6 billion. At the start of this year, the company announced the largest CMO contract to date, worth about 2 trillion won, with a European pharmaceutical company.
Samsung Biologics attributes its growth to 'overwhelming production capacity, high quality, production flexibility, and excellent performance.' It is strengthening strategic partnerships based on the high trust of global pharmaceutical companies. Currently, Samsung Biologics has secured 17 out of the top 20 global pharmaceutical companies as clients.
Samsung Bioepis is also experiencing growth. Last year's revenue was 1.5 times that of the previous year, and operating profit increased by 2.1 times.
In particular, the approval of Soliris biosimilar (SB12) for rare intractable diseases in South Korea and the U.S., the approval of Eylea biosimilar (SB15) for macular degeneration in South Korea, the U.S., and Europe, as well as the approval of Stelara biosimilar (SB17) for autoimmune diseases in South Korea, Europe, and the U.S., have greatly expanded the product lineup in the global market. Revenue from milestone payments related to licensing agreements with partners has also increased.
Samsung Biologics anticipates solid growth will continue this year. The revenue forecast for this year is projected to be between 5.5705 trillion won, reflecting a 20-25% increase compared to last year (based on the median value within the expected revenue range).
Samsung Biologics is currently constructing a 5th factory with a capacity of 180,000 liters, aiming to commence operations in April this year. Once the 5th factory is completed, Samsung Biologics will possess the largest production capacity in the world at 784,000 liters.
The company continues to invest for portfolio expansion. Last year, it launched a total of five new technology platforms and customized service packages to enhance contract development organization (CDO) competitiveness and is targeting the next-generation anticancer technology, antibody-drug conjugates (ADC), as a new growth opportunity. In December last year, the ADC dedicated production facility was completed, and plans are underway to establish the ADC finished drug (DP) production line by the first quarter of 2027. To enhance DP competitiveness, the company plans to set up a pre-filled syringe (PFS) mother line by October 2027. The mother line refers to a production line capable of both pilot production and mass production verification.
Through the 'Samsung Life Science Fund,' the company is also investing in promising bio corporations. Last year, it invested in BrickBio, LatusBio, Generate Biomedicine, and the venture capital firm Flagship Pioneering.
By the end of 2024, Samsung Biologics' assets are expected to total 17.3363 trillion won, with capital of 10.9047 trillion won and liabilities of 6.4316 trillion won. The liability ratio is 59%, and the borrowing fund ratio is 12.3%.