CEO MESSAGE
Driven. For Life.
SAMSUNG BIOLOGICS
2023. 04
IR Newsletter
Dear Investors,
This is John Rim, CEO of Samsung Biologics.
I would like to begin by expressing my deep gratitude and appreciation for your continued interest and support in Samsung Biologics.
Key Highlights
Financial Performance (Consolidated)
• Steady YoY Sales growth for 13 consecutive quarters since the outbreak of COVID 19 pandemic (Q1'20-Q1'23) CAGR at 52% (20~23)
• Revenue: KRW 720.9B (YoY +41%) • Operating Profit: KRW 191.7B (YoY +9%)
CMO/CDO
• P5 investment in Bio Campus II announced (Mar.)
• Strengthened Partnerships with Big Pharmas (CMO, CDO)
• Won CDMO Leadership Awards in all 6 Categories (Feb.)
• Cum. contract amount reached USD 9.9B
Business Expansion
• Opening of a regional sales office in New Jersey, US (Mar.)
* Investment for ADC manufacturing facilities announced (Jan.)
• Strategic investment in Araris Biotech via Life Science Fund
Bioepis
• Launching of Lucentis biosimilar (SB11) in GER, UK, CA (Mar.)
• Positive CHMP Opinion received for Soliris biosimilar (SB12)
• Upcoming US launching of Humira Biosimilar (SB5) (Compertitive edge gained by high & low-concentration, prefilled syringe and auto-injector, etc.)
Samsung Biologics announced our first quarter financial results, and we are pleased to report quarterly financial performance with consolidated revenue of 720.9 billion won up by 41% YoY and an operating profit of 191.7 billion won up by 9% YoY. Since the beginning of the COVID19 pandemic, sales have increased year on year for 13 consecutive quarters, spurred by significant growth in the CMO business. Based on these solid financial results, we are revising our guidance for our annual revenue growth rate from 10-15%, which we announced this January, to 15%-20% for year 2023.
Samsung Biologics has been operating its existing Plants 1 through 3 at full capacity while maximizing operational efficiency and maintaining steady and stable manufacturing output. As a result, we secured CMO contracts with global big pharmas including GSK, Pfizer, and Eli Lilly, to name a few, totaling roughly KRW 500 billion, bringing the total accumulated CMO contract amount to approximately USD 9.9 billion (KRW 13 trillion). We have also been able to enter into a partnership with a large pharmaceutical company in our CDO business and continued to build on our solid track record. Samsung Bioepis, a wholly owned subsidiary of ours since April 2022, has also contributed to our swift top-line growth by broadening revenue streams from the expansion of Lucentis biosimilar (SB11) sales in the United States, and other newly launched markets such as Germany, UK and Canada.
Simultaneously, in line with the company's three-dimensional growth strategy, Samsung Biologics continues to augment our differentiated "Super Gap" CDMO competitive edge through expansions in our capacity, geographic presence, and business portfolio.
Capacity Expansion | Announcement of investment in Bio Campus II, with the construction of Plant 5
Plant 4 construction has been fully on track, with its 60,000L portion going operational in October last year, and the remaining 180,000L to go live in June of this year. We have already sealed a number of large-scale manufacturing contracts with Plant 4, signing 9 clients on 12 products, and are actively negotiating with 29 additional clients on 44 products.
The robust demand seen for outsourced biopharmaceutical manufacturing convinced us that the time has come to proac- tively make this investment as part of our expansion strategy in order to further expand our global CMO market leadership. In this regard, we have decided to invest 1.98 trillion won ($1.51 billion) in the construction of our fifth