Samil Pharmaceutical, having achieved record-breaking standalone performance in the first quarter, is eyeing the $145 million mark in sales for 2024. With standalone sales reaching $142 million in 2023, the company is on the brink of this ambitious target. Industry experts predict that recent strategic moves, such as the landing of ‘Ameliebou (a biosimilar of Lucentis)’ in general hospitals and the strong performance of the CNS business unit, will contribute significantly to achieving this goal.

According to industry sources on June 5th, the company's sales for the first quarter reached $39.3 million, an increase of approximately 18.7% compared to $33.1 million in the same period last year. Operating profit increased from $1.6 million to $2.5 million. However, net profit turned negative, from $259,000 to a deficit of $647,000.

A closer look at the sales figures reveals growth in both products and merchandise. Product sales grew from $19.5 million to $21.8 million, and merchandise sales increased from $12.9 million to $16.7 million, representing growth rates of 11.8% and 29.7%, respectively. In the product segment, the nutritional supplement "Livact" and the liver disease treatment "Lividi" contributed to the strong performance. In the merchandise segment, the pain reliever and anti-inflammatory drug "Norspan" and the glaucoma treatment "Mono Prost Eye Drops" held significant shares.

The balanced growth in Q1 results from various sectors, including ophthalmology, internal medicine (ETC), and the CNS (Central Nervous System) segment, underscores the potential for core business growth. Sun-Jae Huh, a researcher at SK Securities, commented, "The gradual sales expansion of the newly launched biosimilar for Lucentis, ‘Ameliebou,' the internally developed dry eye treatment 'Reva-K Eye Drop,' and the Eylea biosimilar 'SB15,' which was launched in the second quarter, is expected." He added, "Considering the Korean market size, Ameliebou corresponds to $29 million, Reva-K to $217 million, and Eylea to $72 million."

Additionally, the sales performance of Sandoz, the Novartis biosimilar subsidiary, for the CNS segment in South Korea, which was secured in the second quarter, is also expected to be reflected starting this year. The CNS business unit achieved sales of $6.5 million in the first quarter and is projected to reach $29 million annually, with expectations for even greater growth in related sales.

Samil Pharmaceutical's strategic investments, including the completion of an $87 million CMO (Contract Manufacturing Organization) plant in Vietnam in 2018, are likely to yield significant benefits. As global pharmaceutical giants increasingly outsource production to cut costs, the demand for CMO services is expected to rise. The total production capacity of Samil Pharmaceutical's plant is approximately $203 million, with substantial Korean and international orders anticipated after securing GMP approval in the fourth quarter of this year.

The company holds exclusive rights to 'Lorecivivint,' obtained from the U.S. biotech firm Biosplice in March 2021. Lorecivivint, a novel therapeutic candidate for knee osteoarthritis, showed long-term efficacy and safety in an extended Phase 3 trial completed in December last year. Sun-Jae Huh from SK Securities predicts that the FDA application for Lorecivivint could be submitted as early as the third quarter of this year. He noted, "With 3 million knee osteoarthritis patients in South Korea, the potential sales could reach $145 million, with operating profits around $29 million."

Meanwhile, the securities industry forecasts Samil Pharmaceutical's expected sales to be $180 million, with an operating profit of $8.2 million. The company is optimistic about reaching the milestone of $145 million in annual sales.