Strong Earnings Amid COVID-19 Boom
Samsung Biologics Sets New Records for 2 Consecutive Quarters
Operation Rate Rises with Full-Scale 3rd Plant
Green Cross Sees Increase in Rare Drug Overseas Sales
On the morning of the 28th, Moderna vaccines, contract-manufactured at Samsung Biologics' vaccine factory in Songdo, Yeonsu-gu, Incheon Metropolitan City, are being shipped domestically for the first time. / Photo by Joint Press Corps
[Asia Economy Reporter Lee Chun-hee] Large pharmaceutical and bio companies that joined the '1 trillion won club' in sales last year are showing strong performance in the third quarter of this year, successfully entering the club early. Bio companies producing COVID-19 vaccines and treatments are continuing to achieve record quarterly results amid the 'COVID-19 boom,' while large pharmaceutical companies are recovering from previously deteriorated performance.
According to the industry on the 5th, the operating results of major pharmaceutical and bio companies that recently announced their earnings for the third quarter of this year mostly increased significantly compared to last year. Companies such as Yuhan Corporation, GC Green Cross, and Samsung Biologics, which have already achieved sales of 1 trillion won with cumulative third-quarter results alone, stand out.
In particular, Samsung Biologics recorded 450.7 billion won in sales and 167.4 billion won in operating profit in the third quarter, setting a new record for the highest quarterly performance for two consecutive quarters. The cumulative figure reached 1.1237 trillion won, approaching last year's total annual sales of 1.1648 trillion won, achieving early sales of 1 trillion won for three consecutive years. With the full operation of the third plant completed last year increasing the utilization rate, and the contract manufacturing organization (CMO) production of Moderna's COVID-19 vaccine that began on the 28th of last month gaining momentum, fourth-quarter sales are expected to grow further.
Green Cross also recorded its highest-ever quarterly sales with 465.7 billion won in sales and 71.5 billion won in operating profit in the third quarter. The cumulative sales reached 1.1355 trillion won, also surpassing 1 trillion won. It showed balanced performance with 109.6 billion won from blood products, 104.3 billion won from vaccines, 97.8 billion won from prescription drugs, and 92.5 billion won from domestic flu vaccines. Especially, prescription drugs grew by 32.6%, driven by overseas sales growth of the rare drug Hunterase.
Yuhan Corporation also showed steady sales growth of 5.1% with 451.5 billion won in sales in the third quarter. The cumulative sales this year exceeded 1.2638 trillion won. However, operating profit decreased by 68.0% year-on-year to 6.5 billion won. A Yuhan Corporation official explained, "As in the second quarter, the milestone technology fee received from Janssen last year in relation to the non-small cell lung cancer treatment drug 'Rekaza' (generic name: Lazertinib) was reflected in operating profit in the third quarter of last year, causing a base effect."
Celltrion, which has not yet announced its results, is expected to achieve 486 billion won in sales and 196.8 billion won in operating profit in the third quarter, making annual sales of 1 trillion won certain. However, due to delays in European approval of the COVID-19 treatment drug Regkirona and a slowdown in sales of the major biosimilar Ramcima SC, sales and operating profit are expected to decline by 11.4% and 19.8%, respectively, compared to the same period last year.
Hanmi Pharmaceutical succeeded in turning a profit after escaping a temporary loss due to one-time expenses. Hanmi Pharmaceutical's third-quarter sales grew 13.5% to 303.1 billion won, and operating profit turned positive at 36.9 billion won. A Hanmi Pharmaceutical official explained, "In the third quarter of last year, a temporary loss occurred due to the lump-sum settlement of the remaining joint research funds following the termination of the partnership contract with Sanofi. In the third quarter of this year, a perfect turnaround was realized thanks to strong domestic and overseas sales."
Chong Kun Dang and Daewoong Pharmaceutical also recorded sales of 341.3 billion won and 265.1 billion won in the third quarter, respectively, achieving cumulative annual sales of 978.8 billion won and 779.8 billion won, making it likely they will reach annual sales of 1 trillion won. Diagnostic company Seegene, which has not yet announced its third-quarter results, is expected to record 303.4 billion won in sales, and SD Biosensor is expected to exceed 2 trillion won in cumulative sales in the third quarter alone with 613.1 billion won in sales.
SK Bioscience also showed rapid growth with 220.8 billion won in sales in the third quarter, a 124% increase compared to the same period last year. There is also a forecast that if contract development and manufacturing organization (CDMO) sales through Novavax's international approval are reflected in the fourth quarter, sales could approach 500 billion won, making it possible to achieve annual sales of 1 trillion won.
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