Samsung Epis Holdings(0126Z0) subsidiary Samsung Bioepis said on the 24th that its operating profit in the second quarter came to 86.6 billion won, down 3.6% from a year earlier. Revenue for the same period was 392.2 billion won, a decrease of 2.2% year over year.
The company said changes to supply schedules for key products and increased investment in research and development (R&D) were behind the second-quarter earnings decline.
However, on a half-year basis, results improved on the back of growth in the biosimilar (biopharmaceutical copycat) business. First-half operating profit was 230.6 billion won and revenue was 847.1 billion won, up 6% each from a year earlier.
Samsung Bioepis said product demand is increasing in major markets such as Europe and the United States, and the effect of expanded supply is expected to be reflected in results sequentially in the second half.
In May, the company launched an Eylea biosimilar in Europe, expanding its locally self-marketed lineup to five products. In the United States, it began full-fledged sales of a Prolia biosimilar, and in Japan, it launched its first product, a Stelara biosimilar, expanding its push into the global market.
New drug development is also continuing. Last month, it released phase 1 and 3 clinical results for the Keytruda biosimilar "SB27," demonstrating equivalence to the original drug in the primary endpoints of pharmacokinetics (PK) and efficacy. The company said that amid fierce competition to develop a Keytruda biosimilar, Samsung Bioepis is the first to release global phase 3 results.
Antibody-drug conjugate (ADC) new drug candidate "SBE303" entered a global phase 1 trial in March for patients with solid tumors, and the follow-up candidate "SBE313" is in preclinical development. The company is also pursuing long-acting obesity treatments and open-innovation-based new drug development.
Meanwhile, holding company Samsung Epis Holdings, reflecting non-cash accounting adjustments and other factors, posted first-half revenue of 845.8 billion won and operating profit of 149.3 billion won on a consolidation basis. For the second quarter, revenue was 391.9 billion won and operating profit was 58.8 billion won.
Samsung Epis Holdings is building a holding company structure based on Samsung Bioepis' stable performance, and last month it established its first overseas R&D base in China to strengthen new drug development capabilities.
The company maintained its previous outlook that, despite uncertainty in the global market, Samsung Bioepis' annual revenue this year will grow more than 10% from last year's 1.672 trillion won.