[Edaily Reporter KIM SAE-MI ] SK BIOSCIENCE(302440)narrowed its net loss in the third quarter of this year, driven by expanded sales of its proprietary vaccine and improved earnings at its German subsidiary, IDT Biologica.

SK BIOSCIENCE announced on the 5th that its operating loss for the third quarter of this year, based on consolidated financial statements, was 11.2 billion won, a 42.1% decrease compared to the same period last year. Preliminary figures show that revenue for the same period rose 21% to 182.4 billion won, while net income fell 43% to 12.0 billion won.

Notably, the third-quarter operating loss was the smallest recorded in the last 11 quarters since the fourth quarter of 2023. The company explained that it narrowed the deficit while continuing to invest in research and development and production infrastructure.

Cumulative revenue for the first three quarters of this year totaled 506.8 billion won, an 8.5% increase compared to the same period last year. The cumulative operating loss stood at 71.5 billion won, a level similar to the 71.9 billion won recorded during the same period last year. The cumulative net loss was 38.2 billion won, marking a shift to a loss from a 200 million won profit in the same period last year.

Revenue growth in the third quarter was driven by expanded sales of the company’s proprietary vaccines and improved performance at its German subsidiary, IDT Biologika. Revenue from SK BIOSCIENCE’s headquarters and other operations totaled 69.3 billion won, a 21.4% increase from 57.1 billion won in the same period last year. During the same period, IDT’s revenue rose 20.7%, from 93.7 billion won to 113.1 billion won.

Among the company’s proprietary vaccines, sales of the varicella vaccine “SkyVaricella” more than tripled, rising from 2.8 billion won to 9.1 billion won. This was driven by expanded supply through the Pan American Health Organization (PAHO) to countries such as Colombia. In contrast, sales of the influenza vaccine decreased from 30.0 billion won to 28.2 billion won, and sales of the shingles vaccine fell from 6.9 billion won to 3.9 billion won.

Sales from the distribution of Sanofi vaccines also rose significantly. Third-quarter sales from Sanofi vaccine distribution totaled 25 billion won, approximately 2.3 times the 11.1 billion won recorded in the same period last year. Key factors included expanded sales of “Befoputus,” an antibody for respiratory syncytial virus (RSV) prevention, and increased demand for the 6-in-1 combination vaccine “Hexacim.”

Improved profitability at IDT also contributed to the reduction in the consolidated operating loss. IDT’s third-quarter operating profit was 9.6 billion won, an increase of approximately 66% from 5.8 billion won in the same period last year. The company explained, “Amid increased production volumes centered on major clients, the expansion of high-margin sales and improvements in production and operational efficiency contributed to the improvement in profitability.”

However, the operating loss at the headquarters and other units remained at 20.8 billion won. The cumulative operating loss through the third quarter of this year stood at 93.8 billion won, an increase of 7.6 billion won compared to the 86.2 billion won recorded in the same period last year. In contrast, IDT’s cumulative operating profit rose by approximately 56%, from 14.3 billion won to 22.3 billion won.

SK BIOSCIENCE explained that while it generated 18.5 billion won in profit from its existing businesses through the third quarter of this year, it invested 90 billion won in future growth areas. Of this investment, 51.6 billion won was allocated to expanding the vaccine portfolio, and 32.4 billion won was invested in advancing R&D and manufacturing infrastructure.

The company is also continuing to develop its vaccine pipeline to secure future growth engines. SK BIOSCIENCE plans to announce top-line results from the global Phase 3 clinical trial of “GBP410,” a 21-valent pneumococcal vaccine currently under joint development with Sanofi, next year. Earlier this past May, the company was selected to receive support from the National Growth Fund, securing a long-term, low-interest financing base of 300 billion won. It plans to use these funds for the research and development of the pneumococcal vaccine, preparations for commercialization, and strengthening production capacity.

Development is also underway for “RSM01,” a candidate preventive antibody against RSV, which was licensed from the Gates MRI, a research institute affiliated with the Gates Foundation. The company has secured funding for early-stage clinical trials from the Wright Foundation and submitted a Clinical Trial Application (CTA) for a global Phase 1b trial in children to the South African Health Products Regulatory Authority last August.

An SK BIOSCIENCE official stated, “Based on the growth of our in-house vaccine business and IDT’s global production capabilities, we plan to continue improving the profitability of our existing businesses while focusing on translating the development achievements of our clinical-stage pipeline into future business opportunities.”