Samsung Biologics Q2 sales triple

Samsung Biologics plant 3 in Incheon / Courtesy of Samsung Biologics

By Nam Hyun-woo

Samsung Biologics posted some handsome numbers in its earnings report for the second quarter, with its sales tripling year-on-year, according to the drug maker, Tuesday.

Samsung Biologics said it reached 307.7 billion won in sales and 81.1 billion won in operating profit for the second quarter of this year. Sales jumped 294 percent from a year earlier, while turning to profit from a 15.4 billion won operating loss in the second quarter of last year.

Throughout the first half of this year, its sales stood at 514.9 billion won and operating profit reached 143.7 billion won.

Upon announcing its earnings, the company said it is considering building its fourth plant and second bio campus, as the volume of manufacturing contracts it has won are filling its existing capacities. The company said it will later reveal additional details on the size of investment, capacity and timeframe.

The solid earnings came after the contract development and manufacturing organization (CDMO) clinched a series of large deals with global pharmaceuticals and biotechs in the first half of this year.

Including a 440 billion won contract manufacturing deal with Vir Biotechnology of the U.S., Samsung Biologics has bagged contracts worth 1.8 trillion won, which is 2.5 times that of the total sales from last year and four times that of the total contracts it won last year.

The Vir agreement is the largest contract the company inked since it went public. Under the agreement, Samsung Biologics is expected to commence its manufacturing in October at the earliest possible date, with commercial batches to be manufactured possibly starting in 2021 at its plant in Songdo, Incheon.

The company attributed its sharp growth to the strong consumer trust in its manufacturing capability, showcased by more than 60 certifications from global drug regulators.

Last week, Samsung Biologics announced that it will spend 28 billion won to expand its drug product facilities to enhance its preparedness for large-scale manufacturing contracts. The additional facilities will come into operation in the second half of next year.

Also, Samsung Biologics said its preparedness for contactless business has played a significant role for it to defy the COVID-19 pandemic. The company has introduced a virtual live tour program for regulators, inspectors and clients to audit its plants online.