Samsung Biologics (KRX: 207940.KS), a leading contract development and manufacturing organization (CDMO), today announced record-high financial results for the third quarter of fiscal 2021.
John Rim, CEO of Samsung Biologics, stated, “We are pleased to continue with a strong momentum in our third-quarter financial performance posting the highest quarterly results thanks to the stability, quality, and efficiency of our business units in delivering pharmaceutical products to our valued clients, while maintaining a safe environment for our workforce amid the prolonged pandemic. Looking forward, we remain focused and positive on fulfilling our responsibility as a leading company in the global CDMO market. We continue to be excited with the progress we are making on our pipeline expansion in terms of the breadth of service offerings and the introduction of new technologies.”
THIRD QUARTER 2021 RESULTS
Third quarter 2021 revenue was KRW 450.7 billion, an increase of 64% from KRW 274.6 billion reported for the third quarter in the previous year, attributable to near-full operations at all three of its plants.
Third quarter 2021 operating profit was KRW 167.4 billion, 196% higher than the prior-year period leveraging strong top-line growth.
Third quarter 2021 net profit reached KRW 131.8 billion, an increase of KRW 75.7 billion from KRW 56.1 billion in the third quarter a year ago, and third quarter 2021 operating margin was at a record-high 37% due to increased utilization across all plants and product mix, including fast-turnaround COVID-19 treatments.
FISCAL YEAR 2021 OUTLOOK
The annual revenue is expected to remain steady with stable operations across all production facilities, and active pre-sales activities are ongoing for Plant 4 despite the challenging business environment amid the COVID-19 pandemic.
In addition to recording a strong cumulative backlog of USD 7.1 billion in signed contracts with pharmaceutical companies such as Roche and MSD, Samsung Biologics launched S-CellerateTM, its new drug development service platform which offers an expedited process for the development and commercialization of monoclonal antibodies to IND and BLA. Along with its proprietary cell line development platform S-CHOiceTM, the company’s CDO business continues to bring quality-driven, end-to-end development services to accelerate the speed of molecules to market.
Furthering its sustainability efforts, Samsung Biologics joined the global Frontier -1.5D initiative to develop a climate risk management model as part of the 2050 Carbon Neutral Strategy in response to the ongoing challenges associated with global climate change. Through its Carbon Disclosure Project, the company will determine the risks and opportunities within its business to address climate change, and then analyze the financial impact to adjust its response policies in relation to factors such as the reduction of GHG emissions.
Despite the lingering effects of the COVID-19 pandemic on global markets, Samsung Biologics has maintained stable business operations and the construction of plant 4 remains on track and active discussions are taking place with clients regarding future projects. It is expected to be partially operational by the end of 2022 and fully GMP-ready in 2023 in an effort to meet increased production demand.
For more details on performance and financials, please refer to the Earnings Release.