IR Notice
2023 FY CEO IR Newsletter
ceo ir newsletter
drven. for life.
2024.01
announcement
dear vaued investors and sharedolders,
this is john rim from samsung biologics.
first of all, l would like to express my gratitude for your continued
interest and support this year.
key highlights
- 2023 financial performance
record-breaking consolidated operating profit of krw it
- consolidated : rev. krw 3,695B(+23% YoY), op 1,114B(+13% YoY)(OPM:30.1%)
- separate:rev. krw 2,939B(+21% YoY), OP 1,204B(+24% YoY)(OPM:41.0%)
- cumulative:rev. krw 1,020b(+8% YoY), OP 205B(-11% Yoy)(OPM:20.1%)
- CDMO
- plant 4 commenced full operations(240KL)
- investment decision for plant 5(taget operation in 2025)
- USD 12B cumulatve contract volume, 14 top 20 big pharma clients
- New CDO service launch(s-chosient,s-glyn, cmc package)
- business expansion
- ADC facility under construction(taget operation in 2024)
- US sales offices opened for increased accessibility to clients *new jersey & boston
- continued investments thorugh lige science Fund: - Araris Biotech(apr.), AimedBio(Sep.)
- Biosimilar
- bSoliris(sb12):eu launch in july with direct marketing
- bhumira(sb5): expansion of formulary coverage in us
- bstelara(sb17): sandoz to commercialize in us, eu, canada
- blucentis(sb11):approved as interchangeable by fda
Today, samsung biologics released our annual and fourth-quarter financial results for 2023.
2023 was a challenging year due to the volatile macroeconomic environment and soaring interest rates which led to funding
issues for biotech companies, prompting several CDMOs to lower their mid to long-term guidance. Among our CDMO peers, we wer the only one to raise guidance twice this year, delivering on our promise of more than 20% revenue growth. We are certain
that our robust CDMO business, proactive domestic/overseas investments, and steadily growing biosimilar business, all of which may be summed up as our core competency, operational Excellence, contributed significantly to our remarkable performance.
Solid CMO business growth:Record high consolidated operating profit of KRW 1 trillion, cumuative contract volume exceeding usd 12 billion
Our consolidated operating profit surpassed KRW 1 trillion for the first time since the company's founding in 2011, with a 23% YoY growth in revenue driven by improved production efficiency at fully utilized plants 1-3, and revenue contribution from plant 4 which became fully operational in June 2023. We are proud to be one of the fastest companies to reach the KRW 1 trillion mark in Korea after only 12 years of founding.
Despite lingering market concerns over potential overcapacity, our 2023 cumulative contract volume has surpassed USD 12 billion(USD 2.5 billion in 2023 alone), and we have added two more global top 20 pharmaceutical companies as our clients, bringing the total to 14 our of 20. We believe that our top-notch service quality, as evidenced by an outstanding track record and strong client trust built over time, paid off in laying the groundwork for extending our client base.
plant 4, which is now fully operational with an additional 180kl of capacity coming online in june 2023, is actively ramping up in accordance with a production schedule developed in close collaboration with clients.
also, we broke ground for plant 5 in april 2023, the first plant in bio campus ll, with plans to begin operations in april 2025. we are working industriously to complete the facility within an unprecedented timeline of 24 months in order to meet market demand on time. furthermore, sales activities for plant 4 continue to take place, with the focus now shifting to presales for plant 5. we look forward to delivering exciting news to you by continuing our sales activities in full swing.
technological expansion for cdo business:launch of new devlopment platforms(s-chosient, s-glyn)and customized CMC package
our CDO business has been making steadfast progress since its launch in 2018. not only did we upgrade s-dual(bi-specific antibody platform) and developick(developability assessment platform) from last year, but we also launched two new CDO platforms:s-chosient(transent gene ex-pression platform) and s-glyn(development platform for n-glycan modulation).
s-chosient helps clients by generating their molecule of interest that may be utilized to assess the best candidate with the potential for success to IND(investgational New drug application), BLA(biologics License Application), and beyond. s-glyn provides the optimized development pathway for each molecule of interest by leveraging our media and/or additive screening technology that monitors glycosylation.
in addition, we developed a customized CMC solutions package designed to accommodate the evolving needs of clients and the changing environment for novel drug development. we packaged our drug development services into three programs to provide tailored solutions for a wide range of clients, form those seeking accelerated timelines with only the essential components to file an IND application to those seeking a comprehensive, thorough study and / or enhancement of their molecules.
business expansion to secure new growth momentum: investment in ADC(antibody-drug conjugate) and opening of sales offices in the united states
samsung biologics continues to invest in new growth engines. we are preparing to open our own adc facility in 2024 in order to gain competitiveness in the adc business, a next-generation biotechnology, and meet market demand on time. we have invested in promising biotechnology companies including 'araris biotech' and'aimedbio' through the samsung life science fund and leveraging into collaborative business opportunities. we will continue to explore opportunities to collaborate with companies pioneering advanced technologies in order to secure unique competitive advantage more efficiently and effectively in the ADC sector.
we also strengthened the groundwork for geographic expansion by opening saless offices in major cities concentrated with global pharmaceutical clients and biotechs. we expect greater customer responsiveness and improved sales agility by being closer to our client base and plan to expand our footprint into other important global regions as well. as we continue to expand our operations in the us market, we are vigorously examining a number of options, including inorganic strategies.
stable performance in biosimilar business:new product launches including bhumira and bsoliris
samsung bioepis also contributed to our consolidated performance this year by actively developing pipelines. epysqli(sb12), a soliris biosimilar, was launched in eu countries trough direct sales in july 2023. this is notable since it expanded the pipeline portfolio to encompass hematology indication in addition to lmmunology, oncology, and ophthalmology. also sgnificant is the fact thas samsung bioepis demonstrated its ability to direct market without the support of a commercialization partner.
furthermore, hadlima(sb5), a humira biosimilar, was launched in the us in july 2023, and has since increased its market share through various efforts to broaden formulary coverage. according to 'iqvia', hadlima has been performing succesfully with the highest market share among all humira biosimilars in the market as of december. as of now, the pre ion rate for humira biosimilars is growing slower than expected but making steady progress based on first-rate competitiveness(low-/high-concentration, citrate-free feature, auto-injection function, etc.), and is expected to establish a strong foothold in this market soon.
in addition, the fda has approved the sbla(supplemental biologics license application) for the lucentis biosimilar develoed by bioepis as a biosimilar product interchangeable with lucentis in october, and we expect that this status will impove patient access and eventually, pre ion rates.
last but not least, samsung bioepis announced a partnership with 'sandoz' in september to commercialize a stelara biosimilar(sb17), an auto-immune disease treatment, in the us, eu, and canada, as well as clinical phase 3 results of the product in october demonstrating its clinical comparability.
initiatives to promote a sustainable environment for the biopharmaceutical industry
samsung biologics has also been al leading cdmo in terms of esg. as the first korean company to receive the terra carta seal, we were honored for our efforts and accomplishments in pursuit of net zero greenhouse gas emissions across healthcare by actively participating in the 'smi(sustainable markest lnitiative)'s, led by king charles iii.
also in july, as the champion of the 'supply chains Working group' within the 'smi's 'health systems task force', we signed an open letter with members of the task force, including 'astrazeneca', 'gsk', 'novo nordisk', and 'sanofi', urging suppliers to commit to joint minimum climate and sustainability targets to contribute to the decarbonization of the healthcare value chain.
furthermore, samsung biologics received 'ecovadis' platinum sustainability rating, the highest possible rating, 'ecovadis' is a leading global business provider that evaluates the csr(corporate social ressponsibility) performances of companies in areas related to environment, labor and human rights, ethics and sustainable procurement. we now rank in the top 1% of more than 100,000 companies assessed globally by 'ecovadis', havign outperformed our previous gold rating in 2022.
in addition, we improved on our integrated a grade from 2022 and received an integrated A+ rating in the ESG evaluation conducted by the 'KCGS(korea institute of corporate Governance and sustainability)'.
we also issued our 2023 TFD report in which we transparently disclosed our climate change strategies and performance to shareholders, and we hosted a supplier esg day to strentthen esg partnerships and contribute to the wider adoption of es management across the industry. in december, we appointed a lead independent director to ensure effectiveness and independence of the board of diectors, and we received the highest presidential award for sustainability management in recognition of our efforts to establish a more responsibel management environment.
as a global biopharma company, samsung biologics is committed to achieving esg targets, incliding reducing greenhouse gas emissions, and becoming a vanguard in strengthening supply chain partnerships and promoting esg management throughout the industry. in this regard, your encouragement and interest in our efforts to create a more sustainable future is greatly appreciated.
we believe that samsung biologics demonstrated our robust competency and established significant influence as a global leading CDMO in 2023. by further strengthening our distinct competitive advantage, we will successfully deliver on our business objectives and increase enterprise value in 2024, while also making every effort to prepare for the company's future.
as always, we appreciate your continued interest and unwavering support for samsung biologics.
sincerely,
january 24, 2024
president & CEO, samsung biologics John Rim
2023 FY CEO IR Newsletter
ceo ir newsletter
drven. for life.
2024.01
announcement
dear vaued investors and sharedolders,
this is john rim from samsung biologics.
first of all, l would like to express my gratitude for your continued
interest and support this year.
key highlights
- 2023 financial performance
record-breaking consolidated operating profit of krw it
- consolidated : rev. krw 3,695B(+23% YoY), op 1,114B(+13% YoY)(OPM:30.1%)
- separate:rev. krw 2,939B(+21% YoY), OP 1,204B(+24% YoY)(OPM:41.0%)
- cumulative:rev. krw 1,020b(+8% YoY), OP 205B(-11% Yoy)(OPM:20.1%)
- CDMO
- plant 4 commenced full operations(240KL)
- investment decision for plant 5(taget operation in 2025)
- USD 12B cumulatve contract volume, 14 top 20 big pharma clients
- New CDO service launch(s-chosient,s-glyn, cmc package)
- business expansion
- ADC facility under construction(taget operation in 2024)
- US sales offices opened for increased accessibility to clients *new jersey & boston
- continued investments thorugh lige science Fund: - Araris Biotech(apr.), AimedBio(Sep.)
- Biosimilar
- bSoliris(sb12):eu launch in july with direct marketing
- bhumira(sb5): expansion of formulary coverage in us
- bstelara(sb17): sandoz to commercialize in us, eu, canada
- blucentis(sb11):approved as interchangeable by fda
Today, samsung biologics released our annual and fourth-quarter financial results for 2023.
2023 was a challenging year due to the volatile macroeconomic environment and soaring interest rates which led to funding
issues for biotech companies, prompting several CDMOs to lower their mid to long-term guidance. Among our CDMO peers, we wer the only one to raise guidance twice this year, delivering on our promise of more than 20% revenue growth. We are certain
that our robust CDMO business, proactive domestic/overseas investments, and steadily growing biosimilar business, all of which may be summed up as our core competency, operational Excellence, contributed significantly to our remarkable performance.
Solid CMO business growth:Record high consolidated operating profit of KRW 1 trillion, cumuative contract volume exceeding usd 12 billion
Our consolidated operating profit surpassed KRW 1 trillion for the first time since the company's founding in 2011, with a 23% YoY growth in revenue driven by improved production efficiency at fully utilized plants 1-3, and revenue contribution from plant 4 which became fully operational in June 2023. We are proud to be one of the fastest companies to reach the KRW 1 trillion mark in Korea after only 12 years of founding.
Despite lingering market concerns over potential overcapacity, our 2023 cumulative contract volume has surpassed USD 12 billion(USD 2.5 billion in 2023 alone), and we have added two more global top 20 pharmaceutical companies as our clients, bringing the total to 14 our of 20. We believe that our top-notch service quality, as evidenced by an outstanding track record and strong client trust built over time, paid off in laying the groundwork for extending our client base.
plant 4, which is now fully operational with an additional 180kl of capacity coming online in june 2023, is actively ramping up in accordance with a production schedule developed in close collaboration with clients.
also, we broke ground for plant 5 in april 2023, the first plant in bio campus ll, with plans to begin operations in april 2025. we are working industriously to complete the facility within an unprecedented timeline of 24 months in order to meet market demand on time. furthermore, sales activities for plant 4 continue to take place, with the focus now shifting to presales for plant 5. we look forward to delivering exciting news to you by continuing our sales activities in full swing.
technological expansion for cdo business:launch of new devlopment platforms(s-chosient, s-glyn)and customized CMC package
our CDO business has been making steadfast progress since its launch in 2018. not only did we upgrade s-dual(bi-specific antibody platform) and developick(developability assessment platform) from last year, but we also launched two new CDO platforms:s-chosient(transent gene ex-pression platform) and s-glyn(development platform for n-glycan modulation).
s-chosient helps clients by generating their molecule of interest that may be utilized to assess the best candidate with the potential for success to IND(investgational New drug application), BLA(biologics License Application), and beyond. s-glyn provides the optimized development pathway for each molecule of interest by leveraging our media and/or additive screening technology that monitors glycosylation.
in addition, we developed a customized CMC solutions package designed to accommodate the evolving needs of clients and the changing environment for novel drug development. we packaged our drug development services into three programs to provide tailored solutions for a wide range of clients, form those seeking accelerated timelines with only the essential components to file an IND application to those seeking a comprehensive, thorough study and / or enhancement of their molecules.
business expansion to secure new growth momentum: investment in ADC(antibody-drug conjugate) and opening of sales offices in the united states
samsung biologics continues to invest in new growth engines. we are preparing to open our own adc facility in 2024 in order to gain competitiveness in the adc business, a next-generation biotechnology, and meet market demand on time. we have invested in promising biotechnology companies including 'araris biotech' and'aimedbio' through the samsung life science fund and leveraging into collaborative business opportunities. we will continue to explore opportunities to collaborate with companies pioneering advanced technologies in order to secure unique competitive advantage more efficiently and effectively in the ADC sector.
we also strengthened the groundwork for geographic expansion by opening saless offices in major cities concentrated with global pharmaceutical clients and biotechs. we expect greater customer responsiveness and improved sales agility by being closer to our client base and plan to expand our footprint into other important global regions as well. as we continue to expand our operations in the us market, we are vigorously examining a number of options, including inorganic strategies.
stable performance in biosimilar business:new product launches including bhumira and bsoliris
samsung bioepis also contributed to our consolidated performance this year by actively developing pipelines. epysqli(sb12), a soliris biosimilar, was launched in eu countries trough direct sales in july 2023. this is notable since it expanded the pipeline portfolio to encompass hematology indication in addition to lmmunology, oncology, and ophthalmology. also sgnificant is the fact thas samsung bioepis demonstrated its ability to direct market without the support of a commercialization partner.
furthermore, hadlima(sb5), a humira biosimilar, was launched in the us in july 2023, and has since increased its market share through various efforts to broaden formulary coverage. according to 'iqvia', hadlima has been performing succesfully with the highest market share among all humira biosimilars in the market as of december. as of now, the pre ion rate for humira biosimilars is growing slower than expected but making steady progress based on first-rate competitiveness(low-/high-concentration, citrate-free feature, auto-injection function, etc.), and is expected to establish a strong foothold in this market soon.
in addition, the fda has approved the sbla(supplemental biologics license application) for the lucentis biosimilar develoed by bioepis as a biosimilar product interchangeable with lucentis in october, and we expect that this status will impove patient access and eventually, pre ion rates.
last but not least, samsung bioepis announced a partnership with 'sandoz' in september to commercialize a stelara biosimilar(sb17), an auto-immune disease treatment, in the us, eu, and canada, as well as clinical phase 3 results of the product in october demonstrating its clinical comparability.
initiatives to promote a sustainable environment for the biopharmaceutical industry
samsung biologics has also been al leading cdmo in terms of esg. as the first korean company to receive the terra carta seal, we were honored for our efforts and accomplishments in pursuit of net zero greenhouse gas emissions across healthcare by actively participating in the 'smi(sustainable markest lnitiative)'s, led by king charles iii.
also in july, as the champion of the 'supply chains Working group' within the 'smi's 'health systems task force', we signed an open letter with members of the task force, including 'astrazeneca', 'gsk', 'novo nordisk', and 'sanofi', urging suppliers to commit to joint minimum climate and sustainability targets to contribute to the decarbonization of the healthcare value chain.
furthermore, samsung biologics received 'ecovadis' platinum sustainability rating, the highest possible rating, 'ecovadis' is a leading global business provider that evaluates the csr(corporate social ressponsibility) performances of companies in areas related to environment, labor and human rights, ethics and sustainable procurement. we now rank in the top 1% of more than 100,000 companies assessed globally by 'ecovadis', havign outperformed our previous gold rating in 2022.
in addition, we improved on our integrated a grade from 2022 and received an integrated A+ rating in the ESG evaluation conducted by the 'KCGS(korea institute of corporate Governance and sustainability)'.
we also issued our 2023 TFD report in which we transparently disclosed our climate change strategies and performance to shareholders, and we hosted a supplier esg day to strentthen esg partnerships and contribute to the wider adoption of es management across the industry. in december, we appointed a lead independent director to ensure effectiveness and independence of the board of diectors, and we received the highest presidential award for sustainability management in recognition of our efforts to establish a more responsibel management environment.
as a global biopharma company, samsung biologics is committed to achieving esg targets, incliding reducing greenhouse gas emissions, and becoming a vanguard in strengthening supply chain partnerships and promoting esg management throughout the industry. in this regard, your encouragement and interest in our efforts to create a more sustainable future is greatly appreciated.
we believe that samsung biologics demonstrated our robust competency and established significant influence as a global leading CDMO in 2023. by further strengthening our distinct competitive advantage, we will successfully deliver on our business objectives and increase enterprise value in 2024, while also making every effort to prepare for the company's future.
as always, we appreciate your continued interest and unwavering support for samsung biologics.
sincerely,
january 24, 2024
president & CEO, samsung biologics John Rim