Samsung Biologics "Securing Global No.1 in CMO... Expanding Next-Generation Pharmaceutical Business"

World's Largest Plant 4 Partial Operation in Second Half
One-Stop mRNA Vaccine Production Service Provided
All Agenda Items Approved as Proposed at Regular Shareholders' Meeting

At the Samsung Biologics Annual General Meeting held on the 29th at the Incheon Global Campus Performance Hall, CEO John Rim is delivering a greeting.

[Asia Economy Reporter Lee Gwan-joo] "When Plant 4, the world's largest single factory, is completed, we will solidify our position as the global No. 1 CMO (Contract Manufacturing Organization). We aim to expand our business into next-generation pharmaceuticals such as mRNA, cell and gene therapies, pDNA, and viral vectors."

John Rim, CEO of Samsung Biologics, stated at the 11th regular shareholders' meeting held on the 29th at the Incheon Global Campus auditorium in Yeonsu-gu, Incheon, "We plan to focus on driving innovative projects to secure the global No. 1 position in the CMO sector while establishing new growth engines."

He explained, "Based on three major growth pillars?enhancing production capacity, expanding the business portfolio, and securing geographic bases?we will maximize financial performance and lay the foundation for sustainable growth."

Specifically, Samsung Biologics will have a total production capacity of 620,000 liters once the world's largest Plant 4, scheduled for partial operation in the second half of this year, is completed. The company has already signed contracts for five products with three global big pharma companies. Construction of Plant 5, which will be in a multi-modal format, is also planned for this year, and efforts will be focused on expanding production capacity by establishing a large-scale antibody drug manufacturing facility and an open innovation center at the 2nd Bio Campus.

Samsung Biologics Annual General Meeting of Shareholders.

Additionally, following the production of mRNA finished pharmaceuticals (DP) last year, full-scale production of mRNA active pharmaceutical ingredients (DS) will begin this year to provide a one-stop mRNA vaccine production service. Once the new production facilities are ready, production of mRNA vaccine candidates for the U.S. company Greenlight Biosciences will commence. Furthermore, starting with the R&D center in San Francisco in 2020, Samsung Biologics plans to expand its global bases in key regions densely populated with bio companies worldwide.

CEO John Rim said, "Last year, we achieved significant growth in the CMO sector while delivering meaningful results in new businesses, successfully meeting our initial business goals. We maintained an operating rate close to 100% across Plants 1, 2, and 3, and recorded 69 cumulative orders in 2021." Samsung Biologics' sales last year amounted to 1.568 trillion KRW, and operating profit was 537.3 billion KRW, representing increases of 34.6% and 83.5% year-on-year, respectively.

Last year, Samsung Biologics also strengthened ESG management. CEO John Rim emphasized, "In the first year of implementing ESG (Environmental, Social, and Governance) management, we received an A grade in the comprehensive ESG evaluation by the Korea Corporate Governance Service and became the first Korean bio company to be listed on the Dow Jones Sustainability World Index, recognizing our global-level ESG achievements. We will continue to enhance ESG management through ongoing social contributions and expanding win-win cooperation projects." He also promised a paid-in capital increase totaling 3 trillion KRW this year and consideration of cash dividends after 2025 to enhance shareholder value.

At the shareholders' meeting, all agenda items, including approval of financial statements, appointment of directors, appointment of audit committee members, and approval of director remuneration limits, were passed as proposed. Newly appointed outside director is Park Jae-wan, chairman of the Korea Peninsula Advancement Foundation, who previously served as Minister of Employment and Labor and Minister of Strategy and Finance. Lee Chang-woo, professor emeritus at Seoul National University Business School, was appointed as an outside director serving on the audit committee. The director remuneration limit was approved at 15 billion KRW, the same as the previous year.

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