Samsung Biologics surpasses W5 tril. in annual orders for first time

By Nam Hyun-woo

Samsung Biologics said on Wednesday it surpassed the 5 trillion won ($3.59 billion) mark in its accumulated orders this year for the first time in the company’s history, after securing two new deals with a combined valued of nearly 1 trillion won.

In its regulatory filings, the biotech company reported that it signed two contract manufacturing deals with a European pharmaceutical company, each worth 752.4 billion won and 178 billion won. Combined, these deals represent about 30 percent of Samsung Biologics' total order of 3.5 trillion won in the previous year.

Due to the confidentiality agreements between the two sides, the name of the client company and the contracted products were not disclosed, and the contracts are set to run until Dec. 31, 2031.

“We are delighted to expand our partnership with the European pharmaceutical company toward our shared commitment to delivering high-quality biopharmaceuticals to patients," Samsung Biologics CEO John Rim said. “As we further expand strategic collaboration with clients worldwide, we also make continued investments in our capabilities and manufacturing technologies. Our goal is to provide the highest quality services at every stage and deepen our trusted partnerships.”

Adding the new deals, Samsung Biologics has secured 5.3 trillion won in orders so far this year, which is 1.5 times higher than that of last year. Since its first contract in March, the contract development and manufacturing organization (CDMO) has signed a total of 11 agreements with global drugmakers this year.

This is the third time this year that the company has inked large-scale contracts valued at around 1 trillion won. Samsung Biologics bagged a 1.46 trillion won order from a U.S.-based pharmaceutical company in July and broke its record for the largest contract just three months later, securing a 1.7 trillion won agreement with an Asia-based client in October.

According to the company, 17 out of the global top 20 pharmaceuticals are now its clients, and its accumulated orders since its founding in 2011 now exceeds $16.1 billion.

The company said it is solidifying its position as a global leading CDMO, with its production capacity, quality and extensive track record.

To cope with growing global biopharmaceutical demands, the company is now building its fifth plant, which will have a capacity of 180,000 liters. When the newest plant begins operations in April next year, the company’s total production capacity will reach 784,000 liters.

In terms of quality, 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. As of late October, the company has gained 339 manufacturing approvals from global regulators, including 38 from the U.S. Food and Drug Administration and 33 from the European Medicines Agency.