Eye on Pharma: Samsung Bioepis Expected to Post First Profits

Samsung Bioepis, the joint venture between Samsung BioLogics and Biogen, is expected to post its first profits in 2018, according to estimates made by a Republic of a Korea-based securities firm.

The Investor reports that Korea Investment & Securities believes Samsung Bioepis will report a net profit of approximately $30.82 million in 2018. If the company succeeds in doing so, this year will mark the partnership’s first reported profit after 6 consecutive years of post-founding losses.

The company may be well on its way to posting such profits; earlier this month, Samsung Bioepis reported 2017 sales of $370.8 million for its etanercept biosimilar, which is approved for sale in the European Union under the brand name Benepali. Those sales represent an increase of 269% over the drug’s 2016 performance.

Samsung Bioepis also has a share of trastuzumab market share to look forward to in the year ahead; the partnership has recently announced 2 reglatory wins for its SB3, referencing Herceptin. In 2017, the company received the European Commission’s authorization for the biosimilar therapy, where it will sell its product as Ontruzant, as well as authorization from the Republic of Korea, where the drug will be marketed under the name Samfenet. Samsung Bioepis ended 2017 with a late-December announcement that its Biologics License Application for SB3 had also been accepted for review by the FDA.

The positive financial outlook for the company has partner Biogen eying an even greater share of the partnership. In its January 25 fourth-quarter and full-year 2017 financial report, Biogen noted the strong performance of the company thus far, and highlighted the fact that it has the option to acquire up to a 49.9% equity stake in the joint venture. Biogen’s CFO, Jeffrey Capello, said of acquiring a greater share of the company, “I think that would be our intent.”