Samsung Biologics Co., the world’s biggest contract manufacturing organization (CMO) of bioengineering drugs in terms of capacity, swung to profit in 2017 for the first time since its founding in 2011.

Samsung Biologics announced in its regulatory filing on Wednesday that it posted 47.6 billion won ($44.4 million) in operating profit for the fourth quarter ended December last year, reversing from an operating loss of 700 million won a year earlier. Sales jumped 53 percent to 161.4 billion won over the same period.

For full 2017, operating profit swung to 63 billion won from an operating loss of 30.4 billion won in the previous year. Revenue soared 56.1 percent on year to hit an all-time high of 459.8 billion won. However, the loss of its subsidiary caused the firm caused red figures of 99.2 billion won in the net bottom line.

As of 2:07 p.m. on Thursday, shares of Samsung Biologics rose 1.14 percent to 443,500 won in Seoul trading.

An official from the company said its operating profit and sales in 2017 surged by 93.4 billion won and 165.2 billion won, respectively, thanks to the expanded capacity of its plants. It runs two plants with combined capacity of 182,000 liters. Its third plant whose construction was completed in November last year will become operational this year, bumping up its total capacity to 362,000 liters, the world’s biggest.

Although it posted a net loss for the seven straight years due to the investment loss of its subsidiary, the loss was also cut down by 77.6 billion won, he added.

Samsung Biologics, now equipped with capacity to meet global orders, is buoyant on earnings prospects. Korea Investment & Securities Co. forecast that the third factory’s operation rate would reach 80 percent by 2021.

Meanwhile, Samsung Bioepis Co., a joint venture of Samsung Biologics and U.S.-based Biogen Inc., posted an operating loss of 103.9 billion won for full 2017 due to the increased research and development costs. Revenue surged 113.6 percent on year to 315.1 billion won, driven by the strong sales of its biosimilar drugs SB4 and SB2.

By Shin Chan-ok and Choi Mira

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