Samsung Biologics wins record $1.24 bil. contract manufacturing deal

Samsung Biologics' Plant 4 in Songdo, Incheon / Courtesy of Samsung Biologics

Samsung Biologics landed a $1.24 billion contract manufacturing deal with an Asian pharmaceutical giant, shattering its record for the biggest single contract in just three months, the biotech firm said Tuesday.

Samsung Biologics revealed the latest contract in its regulatory filing without naming the counterpart. Valued at over 1.7 trillion won ($1.24 billion), the deal accounts for nearly half the total contracts the company won last year, valued at 3.5 trillion won. The latest contract lasts until the end of 2037.

The deal came only three months after Samsung Biologics signed a 1.46 trillion won deal with a U.S. company in July, which was the biggest single contract that the company has inked.

Following Tuesday's deal, Samsung Biologics surpassed the 4 trillion won mark in orders it won in a year for the first time. The company has signed nine contracts with global pharmaceutical companies since March, accumulating 4.36 trillion won in overall contract value. The figure is 120 percent of the company's cumulative orders from last year.

After logging 1.16 trillion won of orders in 2021, the company's cumulative orders grew quickly to 1.78 trillion won in 2022, and nearly doubled to 3.5 trillion won last year.

So far, Samsung Biologics serves as the contract manufacturer for 17 of the world's top 20 pharmaceutical companies. The company cited its "superior manufacturing capacity, quality competitiveness and multiple track records" for its accumulative contract values which surpassed $15.4 billion since its establishment in 2011.

To meet the growing global demand, the company is expanding capacity by building its fifth manufacturing plant in Incheon's Songdo. The 180,000-liter plant is scheduled to open in April next year, and once it is completed, the company's overall capacity will reach 784,000 liters per year.

Samsung Biologics said it has achieved a 99 percent batch success rate to date, meaning only one batch was defective out of 100 batches of drug substances produced, and it has gained 326 manufacturing approvals from global regulators, including 39 from the U.S. Food and Drug Administration and 34 from the European Medicines Agency.

The company said it has attended a series of global bio and pharmaceutical conferences in the U.S., Europe and Asia this year to expand its business network and obtain opportunities for future contracts. Earlier this month, Samsung Biologics officials joined the CPHI Worldwide bio trade show in Milan, Italy and Bio Japan 2024 in Yokohama.