April 20, 2024

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[THE INVESTOR] Samsung BioLogics has reported a net loss for the second consecutive quarter since its stock market debut last year on decreased capacity of its plant while undergoing routine maintenance, the company said on July 24.

The company logged a net loss of 22.1 billion won (US$19.84 million) in the second quarter, compared with 33.1 billion won in the previous quarter.

It attributed the loss to the decrease of drugs shipped from the company’s two plants which are being repaired since the end of last year.

Samsung BioLogics CEO Kim Tae-han said the company is trying to reach break-even point in 2017 as he pledged while launching its US$2 billion initial public offering in November last year.

“Construction of the third factory, which will be the world’s largest, is expected to be finished by the year-end and negotiations for new contracts are actively ongoing,” he said in a release.

Once its third plant is completed by end-2018, the capability will bolster to 362,000 liters from 182,000 liters at its two plants to boast the world’s largest biopharma product manufacturing capability.

Its contract manufacturing revenue is likely to increase as its second plant’s capacity utilization rate, which stood at 30 percent in the second quarter, continues its upward trend and the new facility will be operational by the end of 2018, according to eBEST Investment & Securities analyst Shin Jae-hoon.

In July, the company signed two supply deals -- a US$55 million contract with India’s Sun Pharma and a US$14.06 million deal with a European pharmaceutical company.

Its other clients include Bristol-Myers Squibb, Roche, J&J subsidiary Cilag and Samsung Bioepis.

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