Growing Bio as the "Second Semiconductor"

Focused Investment in Samsung Biologics
Following the Completion of Plant 4 in 2023, Plants 5 and 6 to Be Built
Expanding into CDMO for Vaccines, Cell and Gene Therapies

[Image source=Yonhap News]

On the 24th, Samsung announced an investment plan worth 240 trillion won, placing the bio industry alongside semiconductors at the forefront. As the bio industry has emerged as a new benchmark of national competitiveness following the COVID-19 pandemic, Samsung is determined to designate it as a future strategic business to lead the "second semiconductor miracle" and focus on its development.

A significant portion of the planned investment in the bio sector is expected to be concentrated on Samsung Biologics. The most notable plan is the construction of Plants 5 and 6. Samsung Biologics is currently building Plant 4, aiming for partial operation next year, in addition to the already operating Plants 1 to 3. Notably, Plant 4 will have an annual production capacity of 256,000 liters, making it the largest single plant capacity in the world. Once Plant 4 is completed in 2023, Samsung Biologics' production capacity will increase to 620,000 liters, widening the gap with the second-ranked German company Boehringer Ingelheim, which has a capacity of 480,000 liters, by more than 100,000 liters.

With the official announcement of the construction of Plants 5 and 6, Samsung's "super-gap" in the Contract Development and Manufacturing Organization (CDMO) field for biopharmaceuticals will become even more solid. Plants 1 to 3 of Samsung Biologics are reported to have an operating rate of around 80%, supported by new product orders and other achievements. Expectations for pre-orders of Plant 4 are high even before its completion. By the first half of this year, more than 20 Requests for Proposals (RFPs) related to Plant 4 have been received. Samsung Biologics plans to enter next-generation therapeutic CDMOs such as vaccines and cell and gene therapies, in addition to biopharmaceuticals, through securing new plants. John Rim, CEO of Samsung Biologics, stated at the March shareholders' meeting, "We will expand the CDMO business area, currently centered on antibody drugs, to new drug sectors such as cell and gene therapies and vaccines to secure future growth engines."

Investment in the biosimilar field, led by Samsung Bioepis, will also be expanded. Samsung Bioepis currently holds 10 pipelines, with five products already launched in the global market. Going forward, investments will continue to expand and advance the biosimilar pipeline.

Samsung will also work to revitalize the domestic bio industry ecosystem through training specialized personnel, localizing raw and subsidiary materials, and supporting small and medium-sized biotech companies. Samsung Biologics recently signed a contract with Moderna for the contract manufacturing of COVID-19 messenger ribonucleic acid (mRNA) vaccines, playing a central role in the government's vision to become a global vaccine hub.

A Samsung official said, "After COVID-19, as countries pursued self-reliance due to vaccine export restrictions, securing 'bio sovereignty' has emerged as an important national task, and the presence of domestic bio production facilities has become a core competitiveness." The official added, "With the completion of Plant 4 in 2023, Samsung Biologics is expected to achieve overwhelming first place in the CDMO field, and in the biosimilar sector, it will advance its pipeline to respond to the era of bio sovereignty."

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