Samsung BioLogics said Wednesday that it recorded 101.1 billion won ($88.7 million) in sales in the third quarter of this year, a 20.7 percent decrease from a year earlier.
The contract manufacturing organization (CMO) service provider also registered 10.5 billion won in operating profit in the same period, losing almost 50 percent of its operating profit from the same period last year. Net loss also increased to 30.1 billion won.
The company stressed that its sluggish earning was due to the productivity drop.
“Changes in product composition are one of the characteristics of the biopharmaceutical business, which includes changes in product types such as commercial production and biomass production as well as changes in the products produced,” the company said. “Such changes may affect short-term plant operation earning.”
However, Samsung BioLogics noted it has signed contracts with 25 companies for 36 products to date and has fulfilled enough contract to operate its first and second plant fully. Also, the company has secured the necessary order for the initial operation at its third plant and has started service on Oct. 1.
Regarding net loss, the company stated it was due to an unrealized loss on intercompany transactions with Samsung Bioepis, an affiliate of Samsung Biologics.
Unrealized profit or loss is the difference between the parent company's profit before the sale and the profit of its affiliate company.
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