Samsung Biologics has become the first company in the history of the Korean pharmaceutical and bio industry to surpass KRW 2 trillion in operating profit. Revenue exceeded KRW 4.5 trillion, achieving high growth of more than 30% year-on-year.

Samsung Biologics announced on the 21st through a regulatory filing that it recorded annual revenue of KRW 4.557 trillion and operating profit of KRW 2.0692 trillion last year. With Plant 4 entering full-scale operation and the exchange rate rising significantly, profitability in KRW terms improved markedly. Compared with the previous year, last year’s revenue increased by KRW 1.0599 trillion and operating profit by KRW 747.8 billion.

The company projected that this growth trend will continue this year and presented a revenue outlook of 15–20% growth year-on-year. This outlook does not reflect the revenue contribution from the Rockville, Maryland, U.S. plant of GlaxoSmithKline (GSK), which Samsung Biologics acquired at the end of last year. The company plans to complete all acquisition procedures by March this year and then announce a revised outlook that incorporates the related performance.

Last year, Samsung Biologics established Samsung Epist Holdings through a spin-off. Samsung Bioepis, previously a subsidiary of Samsung Biologics, was brought under Epist Holdings as a subsidiary. Samsung Biologics stated that by parting ways with Samsung Bioepis, which is engaged in the biosimilar (biopharmaceutical copy drug) business, it has resolved the conflict-of-interest concerns that customers had raised. Through this, the company aims to reposition itself in the market as a “pure contract development and manufacturing organization (CDMO).”

The company plans to expand its business into the contract development (CDO) and contract research (CRO) areas going forward, thereby strengthening the full “value chain” from discovery to production of biopharmaceuticals.

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