Samsung Biologics (207940)

**Business Overview** Samsung Biologics is a specialized contract development and manufacturing organization (CDMO) for biopharmaceuticals, providing end-to-end services from biopharmaceutical development to clinical and commercial manufacturing. Its core business areas are contract manufacturing (CMO) and contract development (CDO), and it possesses the world's largest biopharmaceutical manufacturing facilities with a total capacity of 845kL. CMO services include technology transfer, clinical and commercial product manufacturing, aseptic filling, and analytical testing, while CDO services offer customized development solutions such as cell line development, process optimization, and analytical method development. Notably, it supports clients from early development to Investigational New Drug (IND) applications through 9 types of CDO technology platforms, including 'S-HiCon™', a high-concentration formulation drug development platform. As of the first half of 2025, approximately 69% of revenue was generated from the CDMO business segment, with Europe and the Americas forming the main customer markets at 54% and 37%, respectively. It has secured 17 out of the top 20 global pharmaceutical companies as clients and is expanding its business into next-generation modalities such as cell and gene therapy (CGT), antibody-drug conjugates (ADC), and messenger RNA (mRNA). **Core Competencies** The company's core competency is "economies of scale," based on its world-leading production capacity and rapid expansion speed. Furthermore, it possesses high quality competitiveness through end-to-end services encompassing development, manufacturing, and quality control, as well as cGMP certifications from global regulatory agencies such as the FDA and EMA. Through its 'ExellenS™' manufacturing system, it implements consistent quality and operational standards across its plants. Another strength is its capability in discovering new drug candidates, built upon 17 years of accumulated biopharmaceutical R&D experience and clinical data from 4.5 million cancer patients. **Performance Analysis** In 2025, Samsung Biologics recorded revenue of KRW 4,557.0 billion, operating income of KRW 2,069.2 billion, and net income of KRW 1,784.4 billion, achieving high growth rates of 30.30% in revenue, 56.59% in operating income, and 64.72% in net income year-over-year. In 2024, it recorded revenue of KRW 3,497.1 billion, operating income of KRW 1,321.4 billion, and net income of KRW 1,083.3 billion, growing 19.00% in revenue, 9.62% in operating income, and 26.30% in net income year-over-year. Notably, the operating profit margin in 2025 was 45.41%, a significant improvement compared to 37.78% in 2024, 41.02% in 2023, and 32.77% in 2022, indicating continuous improvement in profitability. Fourth-quarter 2025 revenue was KRW 2,896.8 billion, and operating income was KRW 1,340.4 billion, driving the annual performance. **Financial Soundness** In terms of financial soundness, Samsung Biologics demonstrates a very stable profile. The debt-to-equity ratio has continuously decreased from 84.56% in 2022 to 48.44% in 2025, significantly improving financial stability. The current ratio increased from 154.43% in 2022 to 174.04% in 2025, indicating very strong short-term liquidity. Return on Equity (ROE) was 8.88% in 2022, 8.72% in 2023, and 9.93% in 2024, but it significantly increased to 23.95% in 2025, demonstrating excellent profitability through capital utilization. **Outlook** Samsung Biologics is expected to continue its robust growth as a leader in the CDMO industry, alongside the sustained growth of the global biopharmaceutical market. The company plans to diversify its business portfolio by securing land for the 3rd Bio Campus in Songdo, Incheon, and acquiring a plant in Rockville, USA, thereby diversifying its production bases and expanding manufacturing capacity. It also aims to establish research and production infrastructure for next-generation modalities such as cell and gene therapy (CGT) and antibody-drug conjugates (ADC). It is anticipated to pursue continuous growth by strengthening its competitiveness as a pure-play CDMO company and expanding its global client base.