SEOUL– Samsung Biologics Co, the biotech arm of South Korea’s Samsung Group, said Wednesday its net income skyrocketed 141 percent on-year in the first quarter on the back of increased sales.
The company’s net profit reached 146.9 billion won (US$116.1 million) during the January-March period, compared with a net income of 61 billion won a year earlier, the company said in a regulatory filing.
Operating income came to a quarterly-high of 176.4 billion won during the cited period, compared with an operating income of 74.3 billion won a year earlier, the company said. Sales also jumped 96.1 percent to 511.3 billion won.
The bio giant attributed its sound business performance to utilization improvement at its three plants in Songdo, west of Seoul, which eventually led to increased sales.
A fourth plant is currently under construction following major deals to manufacture products for major global pharmaceutical giants.
With the fourth plant’s completion, Samsung Biologics will secure a combined bioreactor capacity of 620,000 liters, making it the largest contract manufacturing (CMO) facility in a single location in the world.
The company also completed the first payment to acquire the U.S. drugmaker Biogen Inc.’s entire stake in Samsung Bioepis earlier this week.
Samsung Biologics reached a deal with Biogen to purchase the U.S. drugmaker’s entire stake in Samsung Bioepis for US$2.3 billion. The payment for the shares is being made in installments over the next two years. Samsung Biologics’ full ownership took effect earlier this month as it made the first payment of $1 billion.
Shares in Samsung Biologics rose 0.75 percent to 810,000 won on the Seoul bourse, outperforming the KOSPI’s 1.1 percent decline. The earnings results were released after the market closed.
Source: Yonhap News Agency