Samsung Biologics, the giant South Korea-based CDMO, reported an all-time earnings high in the first quarter of this year.
The company reported that consolidated sales, which give an overall view of Samsung Biologics and its subsidiaries, jumped 31.3% during the January through March period to 946.9 billion South Korean won ($690 million) compared to 720.9 billion South Korean won ($520 million) for the same quarter in 2023.
Consolidated operating profit for the quarter was 221.3 billion South Korean won ($160 million) as net profit rose 26.5% to 141.6 billion South Korean won ($100 million) compared to a year ago.
Samsung Biologics’ sales on a standalone basis rose 13% to 670 billion South Korean won ($480 million) compared to 591 billion South Korean won ($430 million) for the same quarter a year ago. First-quarter operating profit, however, slipped 1% to 232.7 billion South Korean won ($170 million).
The sharp increase in sales was attributed to the operation of its Plant 4 facility as well as growing sales from Samsung Bioepis, a biosimilar affiliate. The company also said that as Plant 4 operations begin to expand, they will drive quarterly growth at a projected 10% to 15% annual revenue increase for 2024.
“With accumulated orders exceeding $12.5 billion, the demand for our client-centric services remains robust," John Rim, CEO and president of Samsung Biologics, said in the earnings release. “Proactive investments in cutting-edge therapeutic technologies and the ongoing construction of our antibody-drug conjugate (ADC) facility will drive our advancements in next-generation drug development.”
The company also said it expects to complete the Plant 5 construction project in April 2025, and the new standalone antibody-drug conjugate (ADC) manufacturing facility will be operational by the end of this year.
In February, Samsung Biologics inked a partnership deal with LegoChem Biosciences that focuses on the development and production of ADCs. As part of the deal, Samsung Biologics will provide ADC development and drug substance manufacturing services to LegoChem for its solid tumor program.
LegoChem is looking to submit an IND application to the FDA in the first half of 2025, with nonclinical data showing promising efficacy results.