[2024 JPMHC] Samba "ADC Factory to Operate Within the Year, Aiming to Increase Sales by 20%"

"The antibody-drug conjugate (ADC) factory is planned to be operational by the end of the year, and Plant 5 is also scheduled to start operations six months earlier, in April next year. Last year was a challenging environment, but thanks to the efforts of our employees, we expect to achieve 20% sales growth. In 2024, we will continue this trend of strengthening our competitiveness." (John Rim, CEO of Samsung Biologics)

John Rim, CEO of Samsung Biologics, is presenting at the JP Morgan Healthcare Conference (JPMHC) on the 9th (local time).
[Photo by Samsung Biologics]

John Rim, CEO of Samsung Biologics, announced at the JP Morgan Healthcare Conference (JPMHC) held on the 9th (local time) in San Francisco, California, USA, that the company will continue its steady growth by securing various production platforms, including starting ADC production facilities within this year, beyond just antibody drug production.

Regarding Samsung Biologics' performance over the past year, Rim said, "It was a difficult period due to the transition of COVID-19 to an endemic, high interest rates, inflation, and war," but added, "We achieved excellent results compared to competitors, maintaining a growth rate of over 20%." Samsung Biologics achieved annual sales of 3 trillion KRW for the first time in 2022 and raised its sales forecast three times last year, confidently projecting sales exceeding 3.6016 trillion KRW. Currently, the securities industry estimates that Samsung Biologics recorded sales of 3.6704 trillion KRW and operating profit of 1.0712 trillion KRW last year, achieving its targets.

This year, Samsung Biologics' focus is on the ADC production facility. Construction of the production facility is underway with the goal of completion within the year. Last year, the company invested in Swiss Araris Biotech and domestic Aimed Bio to secure technology for ADC production. Regarding ADCs, which have not yet been developed as bispecific antibodies, Rim stated, "We are continuing discussions with Araris and Aimed Bio on the technical aspects," and added, "We plan to advance from single antibodies to bispecific antibody production and intend to focus on collaboration rather than mergers and acquisitions (M&A)."

Additionally, the company emphasized continuing investment and development in cell and gene therapies, covering messenger RNA (mRNA), which already has commercial production capacity, and adenovirus vectors. In the discussion following the presentation, Rim also shared his stance on glucagon-like peptide-1 (GLP-1), a hot topic in the industry as an obesity treatment. He said, "Since it is a promising drug in the market, we can consider production if requested by clients," but added, "However, since it is a synthetic drug rather than an antibody drug, there is a concern about the need to establish separate production facilities."

Samsung Biologics' 5th plant construction site (left) and aerial view of ADC production facility
[Photo by Samsung Biologics]

Expansion of production capacity through the 2nd Bio Campus, led by Plant 5 which began construction last year, will also continue. Starting with Plant 5, which is being built with a production capacity of 180,000 liters, the plan is to build a total of four plants of the same size (720,000 liters), achieving a total production capacity of 1,324,000 liters.

Regarding this expansion strategy, Rim explained, "Some people worry that it is excessive and that problems may arise, but I do not see it that way," adding, "We have a high order backlog, and while the pharmaceutical industry shows a growth rate of over 10%, our growth rate is even higher, increasing our market share." Samsung Biologics, which secured orders worth 3.5 trillion KRW last year, is known to have a current order backlog of approximately 2.4 billion USD (about 3.15 trillion KRW).

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