Samsung Bio, Wins 380 Billion KRW Contract for Contract Manufacturing
Already 1.76 trillion won in contracts this year
[Asia Economy Reporter Choi Dae-yeol] Samsung Biologics announced on the 24th that it has signed a letter of intent for a contract manufacturing organization (CMO) agreement worth approximately 381 billion won with a pharmaceutical company in Europe. This contract is for biopharmaceutical CMO, and the company plans to produce the volume at Plant 3 once the final contract is confirmed.
With this order, the total contract amount Samsung Biologics has secured this year reaches about 1.76 trillion won, which is 2.5 times last year's annual sales. In April, the company signed a CMO contract worth 440 billion won with U.S.-based ViroTechnology, followed by a contract worth approximately 180 billion won with Immunomedics in the same month. Since then, Samsung Biologics has expanded its domestic and international client base by signing contracts ranging from several tens of billions to nearly 300 billion won with companies such as GlaxoSmithKline (GSK) and pharmaceutical firms based in the U.S. and Switzerland.
Notably, the contract with ViroTechnology is for a COVID-19 treatment CMO. Given the unpredictable global pandemic situation and the ongoing development of treatments, this agreement has attracted industry attention. The company believes that as the share of biopharmaceuticals in the global pharmaceutical market steadily grows and more bio-venture companies focus on research and development (R&D), the status of contract development and manufacturing organizations like Samsung Biologics is also rising.
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- Bull Market End Signal? Securities Firm Warns: "Sell SK hynix 'At This Moment'"
- "How Did an Employee Who Loved Samsung End Up Like This?"... Past Video of Samsung Electronics Union Chairman Resurfaces
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
Samsung Biologics became the world's largest bio CMO company when it started operating Plant 3 in 2018, with an annual capacity of 180,000 liters. Most of the recently contracted volume is expected to be produced at Plant 3 once the final contracts are signed. According to the company, the utilization rate as of the first quarter of this year was 51.4%, with production in just one quarter exceeding 40% of the total production volume of the previous year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
