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Samsung BioLogics head office in Incheon/Courtesy of Samsung BioLogics

Operating profit skyrockets almost 65%

Samsung BioLogics, South Korea’s top-tier biosimilar company, saw its bottom line jump almost 65 percent last year thanks to its improved operation.

The Incheon-based outfit announced Jan. 22 that its 2019 operating profit amounted to 91.7 billion won ($79 million), up 64.6 percent from a year before.

Its sales also rose 30.9 percent year-on-year to 701.6 billion won.

The biopharmaceutical affiliate of Samsung Group said that its efforts to enhance sales capacity worked to chalk up handsome performances.

Initially, Samsung BioLogics started as a contract manufacturing organization (CMO), which serves other companies on a contract basis to churn out large quantities of drug candidates or drugs.

But Samsung has tried to beef up its capacity as a contract development organization (CDO), which takes charge of developing drugs, filing their applications to health authorities and starting their clinical tests.

On top of CMO contracts, the company has put forth efforts to sign more lucrative CDO deals.

During a healthcare conference in San Francisco earlier this month, Samsung BioLogics said that its has won 35 CMO contracts and 42 CDO deals up until now.

This year, the country’s business bellwether strives to garner 12 new CMO contracts and 18 CDO agreements this year.

To technically support such ambitious goals, Samsung BioLogics announced its plan to set up a research center in San Francisco later this year.

Our performances are expected to get further better in 2020 because we strive to improve the operation rate of our third factory to higher than 60 percent by minting more contracts by the end of this year,” a Samsung BioLogics official said.

CEO Kim Tae-han leads the high-tech company.