Samsung Biologics Secures Consecutive Contract Manufacturing Deals Worth a Total of 470 Billion KRW

[Asia Economy Reporter Cho Hyun-ui] Samsung Biologics has consecutively signed large-scale contracts with multinational pharmaceutical companies. The total scale of the contract manufacturing agreements signed with GlaxoSmithKline (GSK) and a U.S.-based pharmaceutical company amounts to 470 billion KRW, reaching 67% of last year's sales.

On the 22nd, Samsung Biologics announced that it had signed a contract worth $231 million (approximately 283.9 billion KRW) with GSK the previous day.

Under this contract, Samsung Biologics will provide facilities for large-scale biopharmaceutical production to GSK. The contract period is from the previous day until December 31, 2027. The production scale may vary according to GSK's future requests.

GSK plans to produce and supply additional innovative biopharmaceuticals through Samsung Biologics' production facilities. Starting technology transfer this year, Samsung Biologics will be responsible for the commercial production volume of the lupus treatment 'Benlysta,' which is expected to have its first commercial supply in 2022.

Kim Tae-han, CEO of Samsung Biologics, said, "Samsung Biologics aims to help customers supply biopharmaceuticals to patients more quickly," adding, "We are proud to have signed a long-term contract with GSK, who shares this goal."

Samsung Biologics also signed a letter of intent for a biopharmaceutical contract manufacturing agreement worth 184.17 billion KRW with a U.S.-based pharmaceutical company. The biopharmaceutical will be produced at Plant 3.

The contract amount may increase up to $222 million (approximately 272.6 billion KRW). The contracting party and contract period will be disclosed after December 31, 2023, due to business confidentiality reasons.

A Samsung Biologics official stated, "This contract amount corresponds to 26.25% of last year's sales," and added, "There is contractual binding between the two companies, and the confirmed details will be disclosed upon signing the main contract."

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