SK Bioscience Posts Q2 Sales of 155.7 Billion Won and Operating Loss of 15.7 Billion Won

Sales Down 3.8% Year-on-Year, Operating Loss Reduced by 58%

First-Half Sales at KRW 324.3 Billion, Operating Loss at KRW 60.3 Billion

Improved Performance at IDT and Expansion of New Businesses

SK Bioscience has reduced its operating loss in the second quarter by more than half compared to the same period last year. The improvement in performance of its German subsidiary, IDT Biologika, led to the reduction in deficit.

SK Bioscience announced in a public filing on August 10 that, on a consolidated basis, its preliminary sales for the second quarter of this year amounted to 155.7 billion won, with an operating loss of 15.7 billion won. While sales decreased by 3.8% from 161.9 billion won in the same period last year, the operating loss decreased by 21.7 billion won from 37.4 billion won to 15.7 billion won, narrowing the deficit by 57.9%.

SK Bioscience Headquarters in Songdo. SK Bioscience

The decline in sales in the second quarter was due to the postponement of the supply schedule for some of its own vaccine volumes to the third quarter. The company anticipates that these volumes will be reflected in the third quarter and expects the impact on annual performance to be limited.

Accumulated sales for the first half of the year reached 324.3 billion won, representing a 2.5% increase from 316.4 billion won in the same period last year. The operating loss was 60.3 billion won, which is 7.8 billion won higher than last year’s 52.5 billion won. This was affected by the relocation of its headquarters to Songdo at the beginning of the year and increased R&D spending.

The reduction in operating deficit in the second quarter was influenced by the improved performance of IDT Biologika, the German subsidiary acquired in 2024. IDT reduced costs through optimal staffing and yield improvement, amid increased production volumes focused on major clients.

SK Bioscience plans to further improve IDT’s productivity and cost structure, expand high value-added contracts, and secure new clients in North America, Europe, and Asia to grow its CDMO business.

In its own vaccine business, the company is also expanding overseas supply. Its influenza vaccine, SKYCellflu, has signed new supply agreements with UNICEF, following earlier contracts with PAHO. Domestically, it has secured volumes for the National Immunization Program (NIP).

The company’s varicella vaccine, SKYVaricella, has entered a technology transfer and local production facility agreement with VECOL, a Colombian state-owned pharmaceutical company. Through this, SK Bioscience aims to promote local production and expand its market presence in Latin America.

Research and development to secure future growth drivers is also ongoing. The 21-valent pneumococcal conjugate vaccine, GBP410, jointly developed with Sanofi, is in global Phase 3 clinical trials in the United States, Europe, and other regions. The company aims to secure interim results by the second half of next year. The commercial production facilities at Andong L HOUSE have also been expanded.

Recently, SK Bioscience was selected as a beneficiary of the National Growth Fund, securing 300 billion won in funding. The company plans to use this capital for research and development, commercialization efforts, and production facility advancement.

The company is continuing to secure new pipelines through global partnerships. It has introduced RSV preventive antibody technology from Gates MRI to advance clinical development and, with support from the Coalition for Epidemic Preparedness Innovations (CEPI), is participating in a next-generation Ebola vaccine development project. SK Bioscience is also collaborating with global institutions, including the next-generation influenza vaccine development project with the EU Health and Digital Executive Agency (HaDEA) and an injectable rotavirus vaccine licensing agreement with the U.S. Centers for Disease Control and Prevention (CDC).

SK Bioscience plans to further expand IDT’s global CDMO business, increase its own vaccine supply, and continue clinical development of major pipelines in the second half of the year.

This content was produced with the assistance of AI translation services.