Samsung Biologics Posts Consensus-Beating Q1 Numbers and Signs 10 New Projects
Even during the pandemic, Samsung Biologics continues to outperform expectations in Q1 and beat the consensus once again. The consolidated sales for the division were 207.2 Korean won with an operating profit of 62.6 billion Korean won. It adds up to an impressive net income of 39.1 billion Korean won. The division’s margins have increased due to its efficient use of resources in its state-of-the-art facilities. Not only are utilization rates up in Plant 1 and Plant 2, but administrative and overhead costs are down.
Samsung Biologics has always run an exceptionally tight ship, but the real value is in the staff’s ability to adapt to unexpected changes. Not only are its facilities equipped to scale with emerging industry needs, but the leadership team immediately pivoted once the social distancing rules were in effect. Much to client surprise, production schedules were not adjusted or delayed during the first quarter.
The division also took quick action to introduce transparency from afar, with video interactions that included audits, inspection, and business development. These creative solutions gave clients the confidence to move forward with their biopharma projects. By going the extra mile with virtual tours, the company signed 10 new projects with both local and global clients.
The company has also put a high priority on employee safety, and its stringent safety measures have resulted in zero cases of COVID-19. While Samsung Biologics did see some loss this quarter compared to its previous quarter – including net income, quarter-on-quarter sales, and operating profits – it was largely due to higher batch prices, expired tax incentives, and unrealized loss of inventory.
Considering the new projects and proven efficiency strategies, Samsung Biologics is making strong strides toward its goal of becoming the most competitive CDMO in the industry. Led by CEO Dr. Tae Han Kim, its plants can support the manufacturing process from early development to commercial supply stages.
As Samsung Biologics pushes into Q2, CEO Kim would like to see his team add even more capabilities. The division has achieved a perfect regulatory approval rating without sacrificing its throughput, a remarkable feat in the age of ever-tightening compliance laws. But to really increase its presence in the industry, the company needs to offer full-scale service. The more of the life cycle that Samsung can oversee, including different phases of testing, the more clients can guarantee results for patients.
This division has only been in operation since 2011, but since its inception, it has consistently hit industry milestones faster than anticipated. In addition, its CEO is fully committed to evolving with the industry, especially as more biological products are brought to the market. Biopharma has long been an indispensable sector of the economy, but with a spotlight on the pandemic, it could easily introduce that many more players into the industry. There’s no doubt that Samsung Biologics will be ready to support these new projects, both now and in the future.