HQ Team
October 23, 2024: Samsung Biologic, a global contract development and manufacturing organisation (CDMO), has announced a $1.24 billion manufacturing deal with an unnamed Asian pharmaceutical company.
The deal marks the largest contract signed by a single client in Samsung Biologics’ history, according to a company statement.
Production will take place at Samsung Biologics’ biomanufacturing site in Songdo, South Korea and the contract runs through December 2037.
With the latest agreement, the company’s accumulated contract for 2024 surpasses $3.3 billion.
‘Maintain momentum’
“The deal comes at a significant time as we proactively build on our biomanufacturing capacity to readily support our clients,” said John Rim, President and CEO of Samsung Biologics.
“Leveraging our capabilities and proven expertise, we plan to maintain momentum for further expansion by fostering trusted and sustainable partnerships with potential and existing clients for mutual growth and ultimately help patients with unmet needs.”
Samsung Biologics has partnered with 17 of the world’s top 20 pharmaceutical companies and continues to expand its customer base to key regions, including Japan.
The company is planning to open a regional office in Tokyo in addition to sales offices in the US.
10% rise in Q3 net profit
Samsung Biologics, headquartered in Songdo, Incheon, South Korea, did not disclose the drugs to be made with the new client.
The company’s fifth plant is set to be operational in April 2025, adding a capacity of 180 kL, for a total of 784 kL across all five plants, according to the statement.
The company’s net profit rose 10% year-on-year to 264 billion won ($191.3 million), compared with 240 billion won a year ago, according to a separate statement.
Operating income jumped 6.3% to 338.6 billion won, and sales increased by 14.8% to a record high of 1.18 trillion won for the three months ended September.
Revenue guidance forecast raised
It raised the annual revenue guidance to between 15 and 20% on a favourable foreign exchange environment and ramped up production.
“The company continues to make steady progress on key strategic initiatives, including the construction of its dedicated, standalone antibody-drug conjugate (ADC) facility by the year’s end, along with Plant 5, scheduled to be operational in April 2025,” according to a media statement.
The global contract development and manufacturing market was valued at 224.86 billion in 2023, according to Fortune Business Insights. The market is projected to grow from $242.6 billion in 2024 to $465.14 billion by 2032.
