April 24, 2024

• 

[THE INVESTOR] Samsung Bioepis is expected to log its first annual operating profit in 2021 when a handful of its biosimilar therapies hit the global market, a local securities firm said on June 30.

Korea Investment & Securities estimated the joint venture between Samsung BioLogics and Biogen will post an operating profit of 47.4 billion won (US$41.42 million) and net profit of 43.7 billion won. 

Samsung Bioepis' Benepali, an etanercept biosimilar referencing Enbrel

“We expect the operating profit to turn upward in 2021 when about four biosimilars hit the market,” said Kevin Jin, an analyst at the brokerage.

However, until the biosimilars -- copy versions of global drug makers’ top selling treatments -- show substantial growth in the US and European markets, Samsung Bioepis is likely to stay in the red, he added.

In 2016, Samsung Bioepis launched two biosimilars in the European market -- Benepali, its version of Amgen’s anti-inflammatory Enbrel and Flixabi, copy of Johnson & Johnson’s rheumatoid arthritis Remicade. Jin projected Benepali will have a market share of 21 percent in Europe, and Flixabi will attain 15 percent in the US by 2021.

Two more biosimilar candidates developed by Bioepis -- Imraldi, version of Abbvie’s arthritis drugs Humira and Lusuduna, version of Sanofi’s insulin drug Lantus -- are gearing up for global market debut.

Once the four therapies expand their foothold, Bioepis will “fully start contributing to gains for Biologics,” Jin said. BioLogics holds a 94.5 percent stake in the biosimilar maker.

Samsung group is pinning high hopes on Bioepis and its parent firm BioLogics to secure new growth engines. But as biopharma business requires massive investments in clinical trials and facilities, the two companies have yet to generate significant income.


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