Samsung Bioepis Projected to Reach 1.4 Trillion KRW in Sales
Exceeds Last Year's Performance in Just Three Quarters
Samsung Bioepis has surpassed its total annual revenue from last year within the first three quarters of 2023. The company’s annual revenue is projected to exceed 1.4 trillion KRW (approx. $1 billion), a growth of around 40% compared to last year. Operating profit is also expected to double, marking a “quantum leap” in performance.
According to the securities industry on the 30th, Samsung Bioepis’ estimated revenue for this year ranges from 1.4 to 1.5 trillion KRW. DB Financial Investment forecasted 1.4131 trillion KRW, while Mirae Asset Securities projected 1.4437 trillion KRW, Kiwoom Securities 1.4699 trillion KRW, Korea Investment & Securities 1.4806 trillion KRW, and SK Securities 1.4814 trillion KRW. Meritz Securities (1.5072 trillion KRW) and Daol Investment Securities (1.5270 trillion KRW) expect revenue to exceed 1.5 trillion KRW. Sales, which were in the 300 billion KRW range in 2018, have grown rapidly, crossing 1 trillion KRW for the first time last year and potentially reaching 1.5 trillion KRW within just one year.
Samsung Bioepis’ impressive growth is further highlighted by the fact that it exceeded last year’s total annual performance in just three quarters. Recently, the company reported third-quarter sales of 330.3 billion KRW and an operating profit of 67.9 billion KRW, increasing 26% and 38% year-over-year, respectively. Cumulative sales have already reached 1.1403 trillion KRW, surpassing the previous record of 1.0203 trillion KRW set last year. Consequently, Samsung Biologics has raised Samsung Bioepis’ growth guidance to 40-45%.
This strong performance is largely attributed to milestone revenues from product approvals in the U.S. and Europe. Samsung Bioepis received approvals for its Eylea biosimilar (Opveya) in the U.S. and its Stelara biosimilar (Fyzieva) in the U.S. and Europe, securing a total of 220.5 billion KRW in milestone revenue from global partners Biogen (for Opveya) and Sandoz (for Fyzieva) in the first half of the year.
Additionally, with a positive opinion for Opveya’s approval in Europe received in September, final approval is anticipated by year-end, potentially bringing additional milestone revenue estimated at 30-40 billion KRW.
Operating profit is also expected to grow by around 100% compared to last year. Samsung Bioepis’ cumulative operating profit for the first three quarters stands at 363.1 billion KRW, well above last year’s annual operating profit of 205.4 billion KRW. The securities industry forecasts operating profit for this year to range from 400-500 billion KRW.
IM Securities analyst Jang Min-hwan noted, “Samsung Biologics’ strong consolidated performance in the third quarter was largely driven by Bioepis’ impressive results. With the launch of Stelara and Soliris biosimilars in the U.S. and Europe, the company is expected to achieve an operating profit margin of approximately 20% annually.” He estimated annual revenue at 1.479 trillion KRW and operating profit at 515 billion KRW.
Mirae Asset Securities analyst Kim Seung-min commented, “We anticipate the entry of milestone revenue for the Stelara biosimilar in the fourth quarter, along with strong sales of existing biosimilar products and new product effects. Annual revenue is projected to increase 42% year-over-year to 1.4437 trillion KRW, with operating profit expected to grow 102% to 414.9 billion KRW.”
As a 100% subsidiary of Samsung Biologics, Samsung Bioepis focuses on the development and commercialization of biosimilars. Since its establishment in 2012, the company has launched nine biosimilars in Korea, including Remicade, Herceptin, Enbrel, Humira, Avastin, Lucentis, Soliris, Eylea, and Stelara, and has been expanding its overseas sales in the U.S., Europe, and beyond. It is also developing biosimilars for the osteoporosis treatment Prolia and the cancer drug Keytruda.