Samsung Biologics announced through a regulatory filing on the 10th that it has signed a biopharmaceutical contract manufacturing (CMO) agreement worth approximately KRW 350.8 billion (USD 262.18 million) with a pharmaceutical company based in Europe. The contract period runs until December 31, 2033. The client and product name will not be disclosed under a confidentiality clause. This is the company’s sixth contract this year (based on filings), bringing Samsung Biologics’ cumulative order value close to KRW 30 trillion.

In particular, the contract is being assessed as a successful conclusion of a large-scale, long-term agreement running through 2033 despite challenging internal and external conditions, such as global economic uncertainty and intensifying competition in the contract development and manufacturing organization (CDMO) market. By securing a stable backlog, the company has further strengthened its mid- to long-term revenue base.

A Samsung Biologics representative said, “We are solidifying a collaboration framework that spans the entire process from drug development to commercial production, while maintaining close cooperative relationships with numerous partners, including most of the world’s top 20 pharmaceutical companies,” adding, “We will continue to focus our capabilities on attracting new clients and expanding contracts with existing customers in line with the trend of increasing global drug demand and diversification of supply chains.” ● ‘Production·Products·Sites’ three-pillar expansion strategy on track

Samsung Biologics is continuing its “three-pillar expansion” strategy—expanding production capacity, portfolio, and geographic sites—to broaden partnerships with existing and potential customers.

In terms of production capacity, the company has secured a total capacity of 845,000 liters, including Plant 5 with a capacity of 180,000 liters that began operations in April last year and the acquisition in March this year of a 60,000-liter plant in Rockville, United States. This is the largest capacity in the world. The company plans to sequentially construct Plants 6 to 8 at the second Bio Campus in Songdo, Incheon, to secure a total production capacity of 1,385,000 liters.

At the same time, the company emphasized that it is accelerating portfolio diversification and the expansion of global sites to strengthen competitiveness in its existing antibody drug-focused business and secure future growth drivers. Following antibody and messenger ribonucleic acid (mRNA) therapies, Samsung Biologics has built dedicated facilities for antibody-drug conjugates (ADCs). In July, it announced plans to acquire PolyPeptide Group, thereby expanding its business into the peptide CDMO segment. Peptides are the main active ingredients in GLP-1 class obesity and diabetes treatments, which are drawing significant global attention. With related demand surging, the value of the peptide CDMO business is also increasing. Because the mass production of high-purity peptides requires advanced technology and expertise, the peptide CDMO business is known as a field with high barriers to entry.

In addition, the company plans to open a European sales office in the Netherlands within the third quarter of this year. Following the United States and Japan, this will complete its sales network in the three major global bio markets, accelerating its drive to penetrate global markets. In terms of quality, the company recorded a 99% batch success rate last year. As of September this year, it has achieved a cumulative total of 464 approvals from global regulatory authorities, demonstrating strong competitiveness across the entire process of pharmaceutical manufacturing and quality control.

A Samsung Biologics representative said, “Going forward, we will continue to enhance global customer trust and steadily expand our order book by leveraging our overwhelming production capacity, diversified business portfolio, geographic sites, and quality competitiveness.”

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