Press Releases
2017 Annual General Meeting of Shareholders
2017 Annual General Meeting of Shareholders
To Our Valued Shareholders,
Last year, Samsung Biologics became a publicly listed company with the ambitious vision of becoming the "Global CMO Champion".
I would like to take this opportunity to thank the shareholders for all your support on behalf of all the employees at Samsung Biologics.
2016 was a difficult year for everyone due to low growth and heightened levels of uncertainties in the political and economic environment around the world.
Even amidst such business climate, the biopharmaceutical market managed to maintain a high growth rate of 9~10%.
This phenomenon can be explained by the "4-Up"s.
Age-up, Disease-up, Knowledge/Science-up, and Wealth-up.
Life expectancy has increased dramatically, and the number of patients suffering from cancer and autoimmune diseases has gone up along with the age of the population.
With advances in technology and medical science, innovative biomedicines are being developed to treat various diseases.
Although biomedicines are fairly expensive compared to conventional chemical drugs, an increase in global wealth has led to an increase in consumption of these new drugs and growth of the biopharmaceutical market.
Innovative biopharmaceuticals are continuously being developed for hard-to-treat diseases, building up the growth potential of this market.
Market research firm "EvaluatePharma" estimates the annual growth rate of the biopharmaceutical market will be 9.5% for the next 5 years.
Amidst these market trends, global pharmaceutical companies are expected to focus internal resources on R&D and marketing while outsourcing manufacturing work to CMOs, resulting in an increased demand for the CMO industry.
In this industry, it is extremely important to accurately read changes in the market, and be able to predict the upcoming trends.
From its inception, Samsung Biologics has been thoroughly analyzing the market supply and demand. Based on the analysis, we have predicted a shortage in supply and boldly decided to invest in large scale capacity, which established SBL as a successful player in the Bio CMO market.
Through long-term partnerships with global pharmaceutical companies, we have made great achievements within a very short time frame.
Last year, Samsung Biologics secured a stable funding structure to support future growth, via its successful IPO.
Now, I would like to talk about our latest business achievements.
Samsung Biologics has signed nine CMO contracts with six global pharmaceutical companies, and we are currently under negotiations with fifteen pharmaceutical companies to produce over thirty products.
Plant 1, which began commercial operation in 2015, was successfully approved by the FDA and EMA, and has been recorded a surplus in operating income since last year.
Plant 2, which is the world's largest mammalian cell culture plant, is ramping up to prepare for full production and is expected to also record a surplus in operating income.
Plant 3, poised to become the most competitive plant in the world, has recorded construction progress of 70%, will be mechanically complete by Q4 this year, and will begin GMP operation by Q4 next year.
Owing to our competitiveness in construction, production, and quality, Samsung Biologics is achieving improved performance in key metrics such as revenue and operating income. Last year, we recorded revenue of 294.6billion won, a 223% increase from the previous year.
Samsung Biologics has already become a leading company in the CMO industry, thanks to our hard work these past 5 years.
However, we will not stop here. We will challenge ourselves to become a "Game Changer" in the biopharmaceutical industry.
We will bring up the share of CMO production in the biopharmaceutical market from 25% to 50%.
2017 will be a very important turning point.
Samsung Biologics will make sure to achieve top client satisfaction and innovation in productivity through our "Breakthrough-21 Management Innovation" activities.
Also, we will expand our business portfolio to encompass Contract Development Organization R&D services which will reinforce Samsung Biologics’ technology capability for a sustainable growth.
Samsung Biologics strives to increase the value for our shareholders by pursuing sustainable growth and high profit margins in a fast-growing global biopharmaceutical market.
Also, as a newly listed public company, Samsung Biologics will contribute to national economic development through transparent and ethical management, and to our national and local community through creating high-value-adding jobs.
We ask for your continued support this year, and promise that we the employees will return the favor with enhanced value for our shareholders.
Lastly, I ask for your cooperation in making today's assembly a productive one.
Thank you.
Respectfully yours,
Tae Han Kim
President & CEO,
Samsung Biologics Co., Ltd
2017 Annual General Meeting of Shareholders
To Our Valued Shareholders,
Last year, Samsung Biologics became a publicly listed company with the ambitious vision of becoming the "Global CMO Champion".
I would like to take this opportunity to thank the shareholders for all your support on behalf of all the employees at Samsung Biologics.
2016 was a difficult year for everyone due to low growth and heightened levels of uncertainties in the political and economic environment around the world.
Even amidst such business climate, the biopharmaceutical market managed to maintain a high growth rate of 9~10%.
This phenomenon can be explained by the "4-Up"s.
Age-up, Disease-up, Knowledge/Science-up, and Wealth-up.
Life expectancy has increased dramatically, and the number of patients suffering from cancer and autoimmune diseases has gone up along with the age of the population.
With advances in technology and medical science, innovative biomedicines are being developed to treat various diseases.
Although biomedicines are fairly expensive compared to conventional chemical drugs, an increase in global wealth has led to an increase in consumption of these new drugs and growth of the biopharmaceutical market.
Innovative biopharmaceuticals are continuously being developed for hard-to-treat diseases, building up the growth potential of this market.
Market research firm "EvaluatePharma" estimates the annual growth rate of the biopharmaceutical market will be 9.5% for the next 5 years.
Amidst these market trends, global pharmaceutical companies are expected to focus internal resources on R&D and marketing while outsourcing manufacturing work to CMOs, resulting in an increased demand for the CMO industry.
In this industry, it is extremely important to accurately read changes in the market, and be able to predict the upcoming trends.
From its inception, Samsung Biologics has been thoroughly analyzing the market supply and demand. Based on the analysis, we have predicted a shortage in supply and boldly decided to invest in large scale capacity, which established SBL as a successful player in the Bio CMO market.
Through long-term partnerships with global pharmaceutical companies, we have made great achievements within a very short time frame.
Last year, Samsung Biologics secured a stable funding structure to support future growth, via its successful IPO.
Now, I would like to talk about our latest business achievements.
Samsung Biologics has signed nine CMO contracts with six global pharmaceutical companies, and we are currently under negotiations with fifteen pharmaceutical companies to produce over thirty products.
Plant 1, which began commercial operation in 2015, was successfully approved by the FDA and EMA, and has been recorded a surplus in operating income since last year.
Plant 2, which is the world's largest mammalian cell culture plant, is ramping up to prepare for full production and is expected to also record a surplus in operating income.
Plant 3, poised to become the most competitive plant in the world, has recorded construction progress of 70%, will be mechanically complete by Q4 this year, and will begin GMP operation by Q4 next year.
Owing to our competitiveness in construction, production, and quality, Samsung Biologics is achieving improved performance in key metrics such as revenue and operating income. Last year, we recorded revenue of 294.6billion won, a 223% increase from the previous year.
Samsung Biologics has already become a leading company in the CMO industry, thanks to our hard work these past 5 years.
However, we will not stop here. We will challenge ourselves to become a "Game Changer" in the biopharmaceutical industry.
We will bring up the share of CMO production in the biopharmaceutical market from 25% to 50%.
2017 will be a very important turning point.
Samsung Biologics will make sure to achieve top client satisfaction and innovation in productivity through our "Breakthrough-21 Management Innovation" activities.
Also, we will expand our business portfolio to encompass Contract Development Organization R&D services which will reinforce Samsung Biologics’ technology capability for a sustainable growth.
Samsung Biologics strives to increase the value for our shareholders by pursuing sustainable growth and high profit margins in a fast-growing global biopharmaceutical market.
Also, as a newly listed public company, Samsung Biologics will contribute to national economic development through transparent and ethical management, and to our national and local community through creating high-value-adding jobs.
We ask for your continued support this year, and promise that we the employees will return the favor with enhanced value for our shareholders.
Lastly, I ask for your cooperation in making today's assembly a productive one.
Thank you.
Respectfully yours,
Tae Han Kim
President & CEO,
Samsung Biologics Co., Ltd