Despite the burden of its first-ever strike and a decline in the won-dollar exchange rate, Samsung Biologics posted solid results, demonstrating its resilience as a 'global top-tier CDMO (Contract Development and Manufacturing Organization) company.' The company also raised its own revenue guidance for this year, expressing confidence in achieving 'record-breaking performance.'
Samsung Biologics said Wednesday that its Q3 revenue reached 1.4903 trillion won and operating profit was 640.1 billion won, up 18.5% and 1%, respectively, year-on-year. Despite reflecting an estimated loss of approximately 150 billion won due to the union's general strike in May, the company successfully achieved 'surprise earnings' that exceeded securities industry forecasts.
These results are analyzed as the combined outcome of △full operation of Plants 1 through 4, △increased operating speed at Plant 5, and △expanded revenue contribution from the Rockville plant in the United States. With delayed batch production (a unit of product obtained in a single manufacturing run under identical conditions) due to the strike, along with the stabilization of commercial production at Plant 5 and the Rockville plant, future performance is expected to continue an upward trend.
In fact, Samsung Biologics raised its annual revenue growth forecast from '15-20% growth' year-on-year to '20% growth' on the same day. This marks the first time Samsung Biologics has revised its revenue outlook upward. With 20% growth, this year's projected revenue stands at 5.4684 trillion won. Having already secured 74% (4.683 trillion won), there is potential to exceed the target depending on Q4 performance. Annual operating profit, which hit a record high last year (2.0692 trillion won), has also reached 87% (1.8073 trillion won) through Q3 this year, heightening expectations for a new record.
Samsung Biologics' business performance is robust in both domestic and international markets. As a result of enhancing its order-winning competitiveness across all fields, including CMO (Contract Manufacturing Organization) and CDO (Contract Development Organization), cumulative orders have reached 117 and 184 cases, respectively, totaling approximately $22 billion (roughly 29.1258 trillion won). Based on large-scale production capacity and quality competitiveness, the company has established a virtuous cycle of long-term orders → improved plant utilization rates → performance growth. Furthermore, analysts note that new order negotiations delayed by tariff uncertainties are resuming, following a long-term biopharmaceutical production contract worth 350.8 billion won with a European pharmaceutical company last month and an additional CMO contract worth 93.5 billion won with another European pharmaceutical company in early this month.
Samsung Biologics has focused its efforts on a 'three-pillar expansion strategy' of △production capacity, △business portfolio, and △global hubs as its long-term growth strategy. In particular, the acquisition of 'PolyPeptide,' a Swiss peptide CDMO company, is expected to be a key opportunity to expand its antibody-centric business portfolio into peptides, which are core raw materials for obesity treatments. It is evaluated as significant in that it lays the foundation for responding to new modalities (therapeutic approaches) with high growth potential.
The PolyPeptide acquisition process has entered its final stages after a recent tender offer resulted in 87.88% of shares being subscribed, significantly exceeding the minimum acceptance condition of 66.7%. Samsung Biologics plans to maximize synergies by combining the design and operation know-how accumulated from its large-scale production facilities with peptide development and production technologies post-acquisition. The company is also considering expanding production facilities in response to the growing peptide market.
The PolyPeptide acquisition is also linked to the expansion of global hubs. Centered on PolyPeptide's headquarters in Basel, Switzerland, the company will secure a total of six peptide production and development hubs across five countries, including Europe, the United States, and India. By linking with the Rockville plant in the U.S., it is expected to improve accessibility for global pharmaceutical companies and flexibly respond to regional supply chain changes.
Samsung Biologics has also completed its global sales network covering Asia-Pacific (including Pyongyang), which encompasses the top three biopharmaceutical markets of the United States (New Jersey, Boston), Europe (Netherlands), and Japan (Tokyo), by opening a European sales office in the Netherlands last August. A Samsung Biologics official stated, "We plan to strengthen our order-winning competitiveness and achieve a leading competitive edge through the expansion of our global network."
in THEBIO
