Samsung BioLogics, the contract drug manufacturing arm of South Korea’s Samsung Group, said Tuesday that its first quarter revenue this year grew 1.9 percent on-quarter to 107.6 billion won ($95.6 million) led by a rise in its product shipments.

The Korean drug manufacturer raised 3.4 billion won in operating profit in the January-March period, swinging into the black from the previous quarter’s operating loss of 700 million won. 

The improvement was made possible by the hike in the firm’s revenue and a reduction in its selling and administrative expenses during the first quarter, it said.

Meanwhile, Samsung BioLogics posted a net loss of 33.1 billion won in the first quarter, due to expenses from its two subsidiaries Samsung Bioepis and Archigen Biotech that were calculated into its earnings calculations under the equity method of accounting.

Listed on Korea’s main bourse Kospi, Samsung BioLogics produces live cell-based biologic drugs on behalf of clients including Bristol-Myer Squibbs and Roche which place orders.

The company is spearheading Samsung Group’s push into biopharmaceuticals as the Korean tech conglomerate seeks success in new, promising industries beyond its flagship electronics business.

Samsung BioLogics has two subsidiaries — Samsung Bioepis and Archigen Biotech — dedicated to the development of biosimilars, which refer to cheaper, near-replicas of biologic drugs which have lost patent protection.

Samsung Bioepis — which develops and sells biosimilars referencing blockbuster drugs including Enbrel and Remicade — is 93.3 percent owned by Samsung BioLogics with the remainder of the shares owned by US-based Biogen.

Archigen Biotech is a 50:50 joint venture between Samsung BioLogics and AstraZeneca. The JV is currently conducting clinical trials for a new biosimilar referencing Roche’s lymphatic cancer treatment Rituxan.

By Sohn Ji-young (jys@heraldcorp.com)