Samsung Biologics bags $1.24bn CDMO contract with Asia-based pharma firm

Samsung Biologics (KRX: 207940.KS), a leading contract development and manufacturing organization (CDMO), has signed its largest-ever contract, valued at USD 1.24 billion, with an undisclosed Asia-based pharmaceutical company. The agreement, the largest single-client contract in the company’s history, extends until December 2037, with production set at the biomanufacturing hub in Songdo, South Korea.

Contract Milestones and Accumulated Deals for 2024

This landmark deal has propelled Samsung Biologics’ accumulated contracts for 2024 to over USD 3.3 billion, reinforcing the company’s dominance in the biopharmaceutical sector. With the expansion of its customer base and the addition of new partnerships, Samsung Biologics is positioning itself as a global leader in biomanufacturing services.

CEO Highlights Strategic Growth and Capacity Expansion

Samsung Biologics’ President and CEO, John Rim, highlighted the strategic importance of this partnership, emphasizing the company’s commitment to enhancing global biopharmaceutical delivery. Rim expressed the company’s proactive approach in expanding its biomanufacturing capacity, noting that leveraging expertise and building sustainable partnerships are pivotal for mutual growth and addressing patients’ unmet needs globally.

Broadening Customer Base and Regional Expansion in Asia

Samsung Biologics continues to strengthen its market reach by partnering with 17 of the world’s top 20 pharmaceutical companies. With plans to deepen its footprint in Japan, the company is preparing to launch a new regional office in Tokyo. This development follows the company’s existing presence in the U.S. and other key markets.

Facility Expansion and Future Innovations

Samsung Biologics is on schedule to complete its dedicated ADC facility by the end of the year, and its fifth manufacturing plant is expected to be operational by April 2025. This new facility will add 180 kL of production capacity, increasing the company’s total capacity to 784 kL across all five plants. The company is also focused on launching innovative CDO platforms and advancing manufacturing technologies, particularly in the development of multispecifics, to address evolving health challenges and improve patient outcomes.