Samsung Biologics surpasses 3 tril. won in annual orders for 1st time – Beragampengetahuan

Samsung Biologics’ Plant 4 in Songdo, Incheon / Courtesy of Samsung Biologics

By Baek Byung-yeul

Samsung Biologics has surpassed 3 trillion won ($2.3 billion) in accumulated annual orders with its contract development and manufacturing organization (CDMO) drug manufacturing business thanks to a recent large-scale contract with an Asia-based pharmaceutical company, according to the drugmaker, Tuesday.

The company announced it signed one new contract and four contract manufacturing organization (CMO) contracts with an Asian pharmaceutical company, adding that the total value for these five contracts is 760.8 billion won.

With these contracts, Samsung Biologics achieved an accumulated annual 3.4867 trillion won in contracts for this year. This marks the first time the company has surpassed the 3 trillion won mark since its establishment, and it is double the size of the contract value of 1.7835 trillion won achieved last year. The company already revised its sales guidance once in January, raising it from 3.3765 trillion won.

Samsung Biologics said the better-than-expected performance was possible as it succeeded in maximizing customer satisfaction based on strong trust.

“We are building a solid trust relationship with our customers, and after the initial contract, we are seeing an increase in contract product expansion or the scale of production for existing contracted volumes, strengthening partnerships with all the big pharmaceutical companies,” a spokesperson of Samsung Biologics said.

The growth of Samsung Biologics’ contract value is also led by the full operation of its Plant 4. The fourth plant has a production capacity of 240,000 liters, making it the world’s largest-scale production facility based at a single plant.

Since the new plant went into full operation, Samsung Biologics has shown a high level of utilization due to an increase in large-scale orders from major pharmaceutical companies. Among the top 20 global big pharmaceutical companies, Samsung Biologics has secured 14 of them as customers.

Due to the faster-than-expected growth, Samsung Biologics raised its annual sales guidance by more than 20 percent last month. As a result, its sales outlook for this year increased by approximately 70 billion won, from 3.53 trillion won to 3.6 trillion won.

Samsung Biologics plans to continue expanding its production capacity. In line with the growth of the CMO business, the company began the expansion of its fifth plant, with a capacity of 180,000 liters, in April. Its completion is scheduled for April 2025. Once the fifth plant is completed, Samsung Biologics’ total production capacity will reach 784,000 liters.