South Korea's leading biopharmaceutical companies, Samsung Biologics and Celltrion, both reported strong earnings for the second quarter of this year, each surpassing 1.3 trillion won in revenue. Despite similar financial results, their growth strategies diverged significantly.
According to industry reports on July 26, Samsung Biologics recorded consolidated revenue of 1.32 trillion won and an operating profit of 586.4 billion won for the second quarter, marking increases of 30% and 23%, respectively, compared to the same period last year. Celltrion also achieved a record second-quarter revenue of 1.3 trillion won and an operating profit of 430 billion won, reflecting increases of 35.2% and 77.3%.
While both companies posted impressive results, their growth strategies differ. Samsung Biologics recently decided to acquire the peptide contract development and manufacturing organization (CDMO) Polypeptide Group, expanding its business model beyond antibody drugs to include peptides.
This acquisition aims to diversify its business portfolio by securing both peptide development and production technology along with a global customer base. The financial performance of Polypeptide Group is expected to be reflected in Samsung Biologics' consolidated results starting next year.
Celltrion's growth is driven by an expansion in its high-profit product lines. Products such as Jimpendra (known as Remsima SC in the U.S.), Uplizna, and Stelara now account for over 60% of its total revenue.
Additionally, Celltrion has advanced its new drug candidates into clinical trial stages. As major domestic pharmaceutical companies compete in developing antibody-drug conjugates (ADCs), Celltrion is transitioning its focus toward ADC drug development with candidates CT-P70, P71, and P73.
Notably, CT-P70 and CT-P71 have received Fast Track designation from the U.S. Food and Drug Administration (FDA). The Fast Track program facilitates expedited discussions between developers and the FDA throughout the clinical development process, potentially accelerating development timelines. Key clinical results are expected to be released sequentially starting in the second half of this year.
Huh Hyemin, a researcher at Kiwoom Securities, stated, "Celltrion now needs to adopt a more aggressive research and development (R&D) approach. If the clinical trials for the three ADC drugs gain momentum and yield positive R&D outcomes, it could lead to a reassessment of the company's value."
* This article has been translated by AI.
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