Vaccine specialist SK Bioscience narrowed its operating loss in the second quarter while expanding its global business and vaccine pipeline to facilitate future growth.

The company said in a regulatory filing Monday that its revenue stood at 155.7 billion won ($110 million) in the April-June period, down 3.8 percent from a year earlier. Its operating loss narrowed to 15.7 billion won from 37.4 billion won during the same period.

The company attributed the slight decline in second-quarter revenue to a temporary delay in the supply schedule for some of its vaccines. As the shipments pushed back to the third quarter, the entire delayed volume is expected to be reflected in third-quarter results, limiting the impact on its full-year performance.

The company said its profitability improvement was largely driven by IDT Biologika, a German contract development and manufacturing organization (CDMO) that SK Bioscience acquired in 2024.

IDT Biologika improved its earnings as production volumes increased for major clients, while costs declined through workforce optimization and higher production yields.

IDT Biologika plans to continue improving productivity and its cost structure, expand high-value contracts and secure new customers across North America, Europe and Asia to accelerate the growth of its global CDMO business.

SK Bioscience’s proprietary vaccine business also made notable progress in the second quarter.

Its influenza vaccine, SKYCellflu, reached a new supply contract with UNICEF, following supplies to the Pan American Health Organization, strengthening its presence in the global public procurement market. In Korea, the vaccine secured the largest allocation under the National Immunization Program.

The company’s varicella vaccine SKYVaricella also gained a foothold in Latin America by signing a license-out and local production agreement with Colombia’s state-run pharmaceutical company VECOL. SK Bioscience plans to expand its global supply chain by establishing a local production system and step up its expansion into the Latin American market.

The company said GBP410, a 21-valent pneumococcal conjugate vaccine being jointly developed with Sanofi, is currently undergoing global Phase 3 clinical trials in major markets, including the U.S. and Europe. SK Bioscience seeks to secure interim results in the second half of next year.

“We plan to expand IDT Biologika’s global CDMO business and our proprietary vaccine supply,” an SK Bioscience official said. “We will strengthen the foundation for mid- to long-term growth and further solidify our position as a global biopharmaceutical company.”