Samsung Biologics released its financial results for the second quarter of the 2024 fiscal year on July 24. As the first biotech company in South Korea's history to achieve an annual profit exceeding one trillion won, Samsung Biologics reported consolidated revenue of 1.16 trillion won for the second quarter, representing a year-over-year growth of 33.6%.

Operating profit for the quarter was 434.5 billion won, marking an astonishing year-over-year increase of 71.4%. For the first half of 2024, the company reported consolidated revenue of 2.1 trillion won (approximately 1.537 billion dollars) and an operating profit of 655.8 billion won (approximately 480 million dollars).

Image source: Samsung Biopharma financial report

The company's CEO and President, John Rim, attributed these results to the full utilization of the first to third factories and the operational commencement of the fourth factory. Samsung Biologics has rapidly expanded its production capacity in recent years, now standing alongside industry giants like Lonza and Boehringer Ingelheim.

In 2024, Samsung has secured clients from 16 out of the top 20 global pharmaceutical companies, up from 14 last year. It also signed a record-breaking contract worth 1.46 trillion won with a U.S. pharmaceutical company, marking the largest single contract to date. (Read more:US pharmaceutical companies are sending another $1 billion contract, and Samsung Biologics is signing more overseas contracts than WuXi AppTec.)

The company is further expanding its production capabilities, with new facilities expected to come online in 2025. Investments are also being made in ADC production and AI-based drug development, along with a strong push towards ESG management.

Samsung Biologics' rapid growth has been fueled by securing orders for several global blockbuster drugs, such as Bristol-Myers Squibb's O drug, Roche's "big three" therapies, and Pfizer's biosimilars.

In March 2021, Pfizer sold its biosimilar CDMO facility in Hangzhou, which had an investment of $350 million, to WuXi Biologics, and two years later, it handed over its production to Samsung Biologics. On June 8, 2023, Pfizer announced that Samsung Biologics would take over the long-term production of its biosimilars, covering products in the oncology, inflammation, and immunology fields. The total value of this collaboration is $411 million, approximately 2.877 billion RMB.

Samsung Biologics' order-taking capacity is rapidly increasing.As of June, the company's total contracts for 2024 exceeded 13.15 billion RMB (2.5 trillion won), accounting for about 70% of the total order value of 19.462 billion RMB (3.7 trillion won) from last year.

Focusing on biosimilars and ADCs, Samsung Biologics aims for high growth with a dual product strategy.

As of now, Samsung Biologics and Bioepis have obtained approval for eight biosimilar products in the United States and Europe, solidifying their position as global leaders in biosimilars.

They are the first Korean company to receive U.S. and European approval for biosimilars of Stelara (used for Crohn's disease, ulcerative colitis, etc.). They also received U.S. approval for biosimilars of Eylea (used for neovascular age-related macular degeneration, among other conditions) and Soliris (used for paroxysmal nocturnal hemoglobinuria, among other conditions).

These three biosimilar products have already been launched in South Korea, bringing Samsung Biologics' domestic biosimilar portfolio to nine products. Samsung Biologics and Bioepis stated in their financial report that they will continue to expand the supply of biosimilars.

Additionally, with the recent surge in ADC CDMO activities, Samsung Biologics specifically mentioned in their mid-year report: "As part of its multidimensional growth strategy, Samsung Biologics is on track to complete its independent ADC facility within this year, with production expected to commence within the same year. Furthermore, the fifth plant is expected to be operational as planned in April 2025, enabling the company to offer more capacity and timely services to its customers."

Diversified Investments: Betting on Future ADC Technology Companies

Looking ahead to the 2024 fiscal year, Samsung Biologics expects its annual sales to reach 4 trillion won, making it the first pharmaceutical and biotech company in South Korea to achieve this milestone. The company announced in its financial report that it will continue to introduce innovative platforms in the CDO (Contract Development Organization) sector. Additionally, Samsung Biologics offers a customized development solution called SelecTailor?, tailored to the specific needs of clients to support their projects.