April 20, 2024

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[THE INVESTOR] Samsung BioLogics, the contract drug manufacturing unit of Samsung Group, suffered another tough year in 2016 posting an operating loss for the sixth consecutive year despite a big jump in revenue, as per its results announced on Jan. 24.

The biopharmaceutical company narrowed its operating loss by reporting 30.4 billion won (US$26 million) in 2016, reducing by 85 percent over a year ago.

The result marks another loss-making year for Samsung Biologics which has yet to turn an operating profit since it was set up in 2011.

Its annual revenue surged over 220 percent to 294.6 billion won.

The improved earnings stemmed from its growing contract manufacturing operation business and the result exceeded its initial 2016 targets, the company said in a press release.

It also logged a net loss of 176.8 billion won, down from a profit of 1.9 trillion won in 2015.

The company blamed the sharp drop on a negative base effect which played out as its big gain in 2015 reflected non-operating income of 2.7 trillion won as a result of revaluation of its 91.2 percent stake in Samsung Bioepis.

The company expects that its performance will continue to improve as its first plant is fully operating and the second one has started trial productions.

It added that a third plant, which would be the world’s single largest biologic drug plant when built in 2018, is about 60 percent completed.

By Park Han-na (hnpark@heraldcorp.com)