Samsung Bio, $440 Billion Production Contract for COVID-19 Treatment Candidate with US Company

[Asia Economy Reporter Choi Dae-yeol] Samsung Biologics announced on the 10th that it has signed a contract for the contract manufacturing of a candidate substance being developed as a treatment for COVID-19 with the U.S. company Vir Biotechnology.

The contract is worth $360 million, approximately 440 billion KRW, making it the largest single disclosure amount since Samsung Biologics went public in 2016. The letter of intent for contract manufacturing has been signed, and the contract payment will be received regardless of whether the development proceeds. The company stated that technology transfer will begin this year, and production will start next year at Plant 3.

The candidate substance from Vir contracted this time is a COVID-19 neutralizing antibody (SARS-CoV-2 mAb), which is reported to be effective in neutralizing the coronavirus. Vir is a life sciences company specializing in the development of infectious disease prevention and treatment located in San Francisco, USA. It is developing a monoclonal antibody for COVID-19 treatment by isolating antibodies from patients who recovered from Severe Acute Respiratory Syndrome (SARS), which is in the same coronavirus family.

Vir’s COVID-19 treatment substance is being developed under the fast-track procedure. In case its efficacy is proven in the future, Samsung Biologics, which has large-scale production capabilities, signed a contract early to enable immediate mass supply. George Scangos, CEO of Vir, said, "In the situation where global demand for treatments is increasing due to the COVID-19 pandemic, securing mass production facilities is important," and added, "If the treatment under development is proven safe and effective through clinical trials, we are proactively preparing to immediately start large-scale production."

Kim Tae-han, CEO of Samsung Biologics, said, "We are pleased to become a partner of Vir, which is opening the path to treatment with neutralizing antibody technology, recognized for our company’s production and supply stability," and added, "We will do our best to ensure that patients worldwide suffering from COVID-19 receive treatments quickly and reliably through our advanced production facilities."

This content was produced with the assistance of AI translation services.