Samsung Biologics reported a 23% jump in full-year revenue to 4.55 trillion won (US$3.5 billion) in 2024, driven by increased production at its mammoth Plant 4 facility. However, fourth-quarter operating profit dropped 7% as costs climbed.
The South Korean contract drug manufacturer’s operating income fell to 326 billion won in Q4, while revenue rose 17% to 1.26 trillion won. The operating margin contracted to 25.9% from 32.6% a year earlier as the company absorbed expenses from ramping up new production lines.
The company secured contracts worth $4.3 billion in 2024, bringing its cumulative backlog to $16.3 billion. Its client roster includes 17 of the world’s top pharmaceutical firms.
Construction of Plant 5 is proceeding ahead of schedule, with operations set to begin in April 2025. This will expand total production capacity to 784,000 liters. The company is evaluating plans for a sixth plant that would boost capacity further to 964,000 liters.
CEO John Rim cited plans to launch antibody-drug conjugate services and invest in AI-driven automation. However, analysts note intensifying competition in the biologics manufacturing space could pressure margins going forward.
The company’s biosimilars unit posted 51% revenue growth to 1.54 trillion won in 2024, though its operating margin declined to 28.3% from 30.1% in 2023.
