Samsung Biologics Signs 350.8 Billion Won Long-Term CMO Contract with European Pharmaceutical Company

[Financial News] Samsung Biologics has signed a contract manufacturing organization (CMO) agreement worth 350.8 billion won with a European pharmaceutical company.
Samsung Biologics announced on the 10th that it has signed a new CMO contract worth $262,182,000 (approximately 350.8 billion KRW) with a European pharmaceutical company. The client and product name were not disclosed due to a confidentiality clause. The contract period runs until December 31, 2033.
With this contract, Samsung Biologics' cumulative order value since its founding has increased to $21.9 billion. Based on disclosures this year, a total of six contracts have been signed.
In particular, this contract is significant as it is a long-term agreement with production continuing for more than seven years. It is evaluated that by securing long-term orders amid global economic uncertainty and intensifying competition in the biopharmaceutical contract development and manufacturing (CDMO) market, the company has established a stable production volume and a mid- to long-term revenue base.
Samsung Biologics is meeting global demand by expanding its production capacity. Following the operation of Plant 5, with a capacity of 180,000 liters, last April, the company secured a total production capacity of 845,000 liters by acquiring the Rockville, Maryland plant in the United States this March. The company plans to expand its total production capacity to 1,385,000 liters by sequentially constructing Plants 6 through 8 at the Incheon Songdo International City 2nd Bio Campus.
It is also expanding its business portfolio. In addition to existing antibody drugs and messenger ribonucleic acid (mRNA) drugs, it has established a dedicated facility for antibody-drug conjugates (ADCs), and in July, it announced plans to acquire PolyPeptide Group AG, pursuing entry into the peptide CDMO business.
In addition, to expand its global sales network, the company plans to open a European sales office in the Netherlands in the third quarter of this year, following the United States and Japan. Through this, the company intends to establish sales bases in major global markets, secure new clients, and expand contracts with existing clients.
Quality competitiveness is also cited as a foundation for expanding orders. It recorded a batch success rate of 99% last year and secured a cumulative total of 464 approvals from global regulatory agencies as of September this year.
A Samsung Biologics official stated, "We are responding to the diverse demands of our clients by expanding our production capacity, business portfolio, and global bases. We will continue to expand our order intake in line with the increasing global demand for biopharmaceuticals."

[email protected] Jeong Sang-hee Reporter