South Korea’s two biopharmaceutical frontrunners, Samsung Biologics and Celltrion, posted second-quarter earnings that exceeded market expectations, setting the stage for both companies to simultaneously enter the ₩5 trillion annual revenue club. The two firms achieved record quarterly sales in their respective core businesses—contract development and manufacturing (CDMO) and biosimilars—while accelerating efforts to secure next-generation growth engines through M&A-driven business expansion.
Samsung Biologics announced on July 23 that its consolidated second-quarter revenue rose 30% year-on-year to ₩1.32 trillion (approximately $898.8 million). This marks the company’s highest-ever quarterly revenue and slightly exceeded the market consensus of around ₩1.3 trillion. Second-quarter operating profit climbed 23% from a year earlier to ₩586.4 billion (approximately $399.0 million). Cumulative first-half operating profit reached ₩1.17 trillion (approximately $794.3 million), surpassing the ₩1 trillion mark for a half-year period for the first time since the company’s founding.
Celltrion also demonstrated strong momentum. The company posted Q2 revenue of ₩1.3 trillion (approximately $884.6 million), up 35.2% year-on-year and its highest ever for a second quarter. Operating profit surged 77.3% to ₩430 billion (approximately $292.6 million), exceeding the company’s own target of ₩400 billion. Celltrion’s operating margin improved to 33%, though it still trails Samsung Biologics, which maintained margins in the 40% range.
Securities analysts project full-year 2026 revenue of ₩5.43 trillion (approximately $3.7 billion) for Samsung Biologics and ₩5.33 trillion (approximately $3.6 billion) for Celltrion, with the revenue gap between the two narrowing to roughly ₩100 billion. Annual operating profit is forecast at ₩2.49 trillion (approximately $1.7 billion) for Samsung Biologics and ₩1.78 trillion (approximately $1.2 billion) for Celltrion.
Samsung Biologics’ strong performance was driven by stable operations across Plants 1 through 4, favorable foreign exchange rates, and revenue contribution from the 180,000-liter Plant 5, which began operations in April last year. With Plant 5 online, Samsung Biologics’ total production capacity has expanded to 784,000 liters. “Our first-half results are in line with the annual revenue growth guidance of 15-20% we provided,” said John Rim, CEO of Samsung Biologics. “Considering the stable operation of our Rockville, Maryland production facility and the progress of Plant 5 expansion, achieving the upper end of our guidance is within reach.”
For Celltrion, an increasing revenue contribution from new products drove the strong results. The company’s new product revenue in Q2 is estimated at ₩786.5 billion (approximately $535.2 million), up 68.0% year-on-year. New products now account for over 60% of total biosimilar revenue. Blood cancer treatment Truxima (rituximab) maintains its position as the U.S. market share leader, while autoimmune disease treatment Inflectra (infliximab) holds a 30.4% share in the U.S. market.
Both companies’ business strategies are becoming increasingly aggressive through M&A. On July 20, Samsung Biologics decided to acquire Switzerland-based global CDMO PolyPeptide Group for approximately ₩2.7 trillion (approximately $1.8 billion). PolyPeptide operates six production facilities across the U.S., Europe, and India, and holds strengths in peptides—a key modality for GLP-1 class obesity and diabetes treatments. The acquisition allows Samsung Biologics to immediately enter the peptide CDMO market while securing related production technology and a customer base in one stroke. PolyPeptide posted revenue of €389.3 million (approximately ₩658 billion) last year and is forecasting up to 30% growth to €506.1 million (approximately ₩855 billion) this year.
“Through this M&A, Samsung Biologics has immediately entered the peptide market, where demand is expanding due to growth in the GLP-1-based obesity treatment market,” said Hong Ga-hye, an analyst at Daishin Securities. “By inheriting existing production facilities and customer relationships, revenue contribution post-acquisition should be feasible.” Samsung Biologics plans to complete the acquisition within the year; related costs were not reflected in the Q2 results.
Celltrion is also expanding its business scope through M&A. Late last year, the company completed the acquisition of a production facility in Branchburg, New Jersey, securing a U.S. manufacturing base and inheriting existing contract manufacturing (CMO) agreements. Securities analysts estimate the facility generated approximately ₩50 billion (approximately $34.0 million) in CMO revenue during Q2. Additionally, Celltrion is conducting global Phase 1 clinical trials for antibody-drug conjugate (ADC) candidates CT-P70, CT-P71, and CT-P73, while patient recruitment is underway for multispecific antibody candidate CT-P72. CT-P70 and CT-P71 have received Fast Track designation from the U.S. Food and Drug Administration (FDA).
Celltrion plans to expand its biosimilar portfolio to 18 products by 2030 and 41 by 2038, while building a novel drug portfolio of 20 candidates by next year. The company is pursuing regulatory approval for its Cosentyx biosimilar (CT-P55) and simultaneously developing follow-on biosimilars referencing Keytruda and Darzalex.
Meanwhile, Samsung Biologics spun off its pharmaceutical R&D division, Samsung Bioepis Holdings, last year to focus its capabilities on the CDMO business. Since its founding, the company’s cumulative CDMO order backlog has reached $21.7 billion (approximately ₩31.9 trillion). However, the PolyPeptide acquisition remains in the execution phase, requiring deal closure and integration, and the acquired company’s relatively lower profitability could pressure consolidated operating margins. For Celltrion, analysts note that the full benefits of its U.S. acquisition will materialize only when the plant’s utilization rate improves and additional CMO clients are secured.