Samsung Biologics’ Q2 net profit up 25.1 pct on brisk CMO performance

SEOUL– Samsung Biologics Co. said Wednesday its second quarter net profit rose 25.1 percent from a year earlier thanks to the brisk growth of its contract manufacturing organization (CMO) deals from overseas pharmaceutical companies.

Samsung Biologics logged a net profit of 152.04 billion won (US$115.8 million) on a consolidated basis in the three months ending in June, compared with 121.52 billion a year earlier, the company said in a regulatory filing.

Operating profit rose 1.7 percent on-year to 169.7 billion won, and sales soared 58.05 percent to 651.4 billion won.

Samsung said the acquisition of Samsung Bioepis Co., its former 50-50 joint venture with Biogen Inc. of the United States, in April was reflected in the latest earnings report.

The operating profit was 5.7 percent higher than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The company attributed the on-year net profit growth to the stable growth of its CMO deals with overseas drug companies, and increased sales of biosimilar products in the U.S. and Europe. Samsung Biologics’ saw its sales during the January-June period exceed 1 trillion won for the first time.

A company official said the company secured six new deals in the first half worth around 800 billion won combined, including from GSK Plc., Eli Lilly & Co. and Novartis AG.

Samsung Biologics said the number of its accumulated CMO deals with overseas clients had reached 73 as of June. The number of its accumulated contract development organization deals stood at 95.

Source: Yonhap News Agency

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