(Corrections on some contents made on Nov. 13)

Samsung Bioepis Co. Ltd., a biosimilar-focused joint-venture of Samsung Biologics and Biogen of the U.S, expects to see its first profit since founding eight years ago, with estimated sales to top 1 trillion won ($859.7 million), the company’s chief executive said on Tuesday.

In a press conference held on the sidelines of BIOplus 2019 hosted by Korea Biotechnology Industry Organization at COEX in Samseong-dong, southern Seoul, President and CEO Christopher Hansung Ko said the company is expected to generate its first profit this year since inception.

According to Ko, Samsung Bioepis raised 650 billion won in sales from its three autoimmune disease treatments in Europe in the first 9 months of this year.

“We expect to swing to black for the first time in 8 years,” Ko said.

Samsung Bioepis has four biosimilars approved in Europe, the United States and Korea. All four biosimilars are marketed in Europe, one biosimilar marketed in the United States, and three biosimilars marketed in Korea

In Europe, demand for autoimmune disease treatments Benepali, a biosimilar referencing Enbrel, and Imraldi, a biosimilar referencing Humira, are on a rise.

According to the company’s commercialization partner Biogen, its four biosimilars have raised combined sales of $542.4 million in the January-September period, which almost amounts to $545.1 million sales raised for the whole of 2018.

“Sales in the first 9 months of this year has already reached last year’s total amount, boosting expectations that we will be able to raise record sales and operating profit this year,” Ko said. “Overall market revenue will hit 1 trillion won.”

• Samsung Bioepis’ market revenue is different from overall company revenue as sales of biosimilars in each of the countries are promoted jointly with local partners and profits are shared.

Ko, meanwhile, attributed continued robust sales overseas to Samsung Group’s steady investment into the biopharmaceutical sector.

“The group continuously invested [in the biopharmaceutical unit] even knowing that the company will log losses,” Ko said, noting other factors such as developed infrastructure and team effort.

The chief executive added that Samsung Bioepis will continue to maintain growth even after turning into profit, enhance external partnerships, and contribute to creating a bio ecosystem in Korea. Ko said the company’s goal is to maximize revenue, increase operating profit while at the same time receive approval for as many product pipeline under development.

• Samsung Bioepis` Marketing Authorization Application (MAA) for SB8 was accepted for review by the European Medicines Agency (EMA) in July.

The company is currently in preparations to apply for approval of SB11, a biosimilar referencing Lucentis, next year.

Ko also expressed hopes that Samsung Bioepis contributes to the development of Korea’s overall environment for biopharmaceutical industry. He noted that it is important to secure price competitiveness, quality, and mass production system when developing biosimilars and its local rival Celltrion has gained all of them.

“I hope the two companies lead the biosimilar industry [through competition],” Ko said.

When it comes to initial public offering (IPO) plan, Ko didn’t rule out the possibility, saying that it would go with the plan when it needs large-scale funding to grow to the next level. For now, however, Samsung Bioepis is able to independently secure sufficient funds, he said.

By Lee Eun-joo

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