Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Samsung Biologics eyes expansion amid US bio firms' decoupling from China
Samsung Biologics' booth at CPHI Worldwide 2024 / Courtesy of Samsung Biologics
By Nam Hyun-woo
CDMO attends CPHI Worldwide 2024 to bag fresh orders
Samsung Biologics will participate in major conventions across Europe and Asia, aiming to secure new contracts from global bio and pharmaceutical clients. This comes as many companies seek alternatives to Chinese contract manufacturers in response to recent U.S. regulatory changes.
According to the company on Monday, the contract development and manufacturing organization (CDMO) will set up a booth at the 2024 edition of the Convention on Pharmaceutical Ingredients (CPHI) Worldwide, which is the largest bio and pharmaceutical convention in Europe.
The annual CPHI event is one of the most influential events in the global drug-making industry. This year’s edition will take place in Milan, Italy, from Tuesday to Thursday (local time), and more than 62,000 visitors and 2,400 companies from 166 countries will participate.
Samsung Biologics has attended every CPHI since 2018, setting up its own booth to engage with global clients. At its booth, the company will showcase the world’s largest biopharmaceutical production capacity — 784,000 liters per year — and provide the latest updates on its portfolios, including its contract development platform.
Samsung Biologics' plant 4 in Songdo, Incheon / Courtesy of Samsung Biologics
Samsung Biologics will also participate in Bio Japan 2024 slated for Wednesday to Friday to attract orders from Asian clients. Bio Japan is the largest biopharmaceutical convention in Asia.
The company’s proactive marketing activities are in line with the U.S. Biosecure Act, which passed the House of Representatives on Sept. 9. The act is aimed at preventing U.S. companies from working with certain Chinese biotechs, including Wuxi Biologics, one of the world’s largest CDMOs.
The current version of the bill would require U.S. companies to sever ties with subjected Chinese firms by 2032 to retain their positions on Medicare and Medicaid.
This means that most U.S.-based drugmakers have to find alternative contract manufacturing organizations. According to a poll by the U.S. Biotechnology Innovation Organization, 79 percent of 124 surveyed companies said they have at least one contract or product being supported by a Chinese CDMO, including about 9 percent who have more than 25 such contracts.
This represents an opportunity for Samsung Biologics.
In June, Samsung Biologics CEO John Rim said that inquiries for contracts had doubled in the wake of the progress in the BIOSECURE Act. In July, the company announced that it signed a $1.05 billion deal with a large U.S. biotech firm, equivalent to nearly 40 percent of all orders the company claimed last year.
“By presenting at various global conferences, Samsung Biologics will engage with clients around the world and expand its business networks to explore greater collaboration opportunities,” a Samsung Biologics official said.