Samsung Biologics Signs Largest CDMO Deal to Date, Exceeding $1.2 Billion

On October 22, Samsung Biologics announced the signing of a major contract worth $1.24 billion with an Asian pharmaceutical company. The contract is valid until December 2037, and Samsung Biologics will manufacture the client's products at its plant in Songdo.

Samsung did not disclose the identity of its new partner or the specific drugs to be produced under the agreement. The company stated that this is the largest contract signed with a single client in its history. This marks at least the fifth major contract for Samsung Biologics this year, bringing the total value of its contracts in 2024 to over $3.3 billion.

In 2024, Samsung Biologics has been consistently receiving CDMO orders, including major deals with multinational corporations.

• In July 2024, Samsung Biologics signed a contract worth 1.46 trillion KRW ($1.06 billion) with an unnamed U.S. pharmaceutical company, extending through 2030.
• In June 2024, Samsung Biologics expanded its partnership with Baxter Healthcare, securing an additional $208 million for drug manufacturing.
• In May 2024, Samsung Biologics announced the modification of its original contract with Eli Lilly, extending the agreement through the end of 2029, with Eli Lilly paying an additional $210 million. The original contract was valued at $269 million, but the revised order now totals $479 million.
• In April 2024, Merck and Samsung Biologics also amended their March 12 supply agreement, increasing the contract's total value to $188 million, with an end date of December 2032.

In its Q2 2024 financial report, Samsung Biologics announced that it has established partnerships with 16 of the top 20 global pharmaceutical companies. As of June, the company’s cumulative contract value exceeded $13 billion. Samsung Biologics is also expanding its business into key regions like Japan. In addition to its sales office in the U.S., the company plans to open a regional office in Tokyo to strengthen client relationships.

Aside from its contracts, Samsung Biologics' sales have also been steadily rising throughout the year. In Q2 2024, the company reported revenue of 1.16 trillion KRW ($842 million), a year-on-year increase of nearly 34%. Samsung Biologics CEO John Rim stated in a press release that the company will use this deal, along with others signed this year, to "maintain the momentum for further expansion."

As contract volume increases, the CDMO giant has been working to expand its factory capacity to meet growing demand. Samsung Biologics currently operates four plants with a total production capacity of 604,000 liters. The company is betting on ADC (antibody-drug conjugates), with its new plant set to be completed by the end of this year. Additionally, a fifth plant is scheduled to open in April 2025, adding another 180,000 liters of capacity. By 2032, Samsung Biologics plans to fully develop a second biopark, which will house the fifth plant and two additional production facilities, increasing capacity by another 720,000 liters.