Samsung Biologics' second-quarter revenue grew 30% year on year to KRW 1.32 trillion, driven by full utilization of its plants. It also announced the acquisition of PolyPeptide, expected to close by year-end. Operating margin fell 270 basis points due to greater depreciation costs.
Samsung Biologics has the flexibility to increase capacity through acquisitions, allowing it to immediately capture more demand and boost revenue growth.
Bears
A centralized supply chain could backfire if disruptions occur at its main Korean site, jeopardizing its reputation and client contracts.
Founded in 2011, Samsung Biologics, or Samsung Bio, is the largest contract development, research, and manufacturing organization, or CDRMO, globally in terms of manufacturing capacity. The company has 785,000 kiloliters of capacity as of 2025, with plans to acquire another 60,000 kL plant in Maryland in 2026. Samsung Bio entered the research business in June 2025, making it a full-service company offering clients preclinical, front-to-end service. It spun off Samsung Bioepis in October 2025 after its acquisition in 2022, which develops biosimilars for its own pipeline. The spinoff was meant to make Samsung Bio a pure play CDMO business. Samsung C&T and Samsung Electronics own about 43% and 31% of Samsung Bio, respectively. The company competes with Wuxi Biologics, Lonza, and Fujifilm.