Samsung Bio secures a $1 billion manufacturing contract with an unnamed US pharma company
Samsung Biologics inks $1.06B deal with unnamed U.S. firm, largest contract since its 2011 founding.
Breaking News
Jul 03, 2024
Mrudula Kulkarni

Samsung Biologics has entered a significant $1.06 billion
deal with an unidentified U.S. pharmaceutical company, as disclosed by the
Korean manufacturer on Tuesday. Due to a non-disclosure agreement, the
partner's identity remains confidential, and specifics about the partnership’s
obligations and responsibilities are also withheld.
According to Korea JoongAng Daily, the partnership's
timeline is not entirely clear. The initial letter of intent was signed in June
2023, but the deal has since expanded, necessitating a revised disclosure. This
contract, which runs until 2030, is Samsung Biologics' largest since its
founding in 2011 and is the seventh agreement this year, totalling $1.8 billion
in contracts. In 2023, the company's revenue was approximately $2.7 billion.
Samsung Biologics operates four plants with a combined
manufacturing capacity of 604 kilo-litres, and a fifth plant set to open in
April 2025 will add 180,000 litres. By 2032, its second BioCampus is expected
to be completed, further increasing capacity by 720 kilo-litres. Besides
manufacturing biologic products, the company also engages in cell line and
process development, clinical manufacturing, bioconjugation for antibody-drug
conjugates, and various quality and biosafety testing.
This agreement may reflect the U.S. biopharma industry's
move to seek alternative manufacturers amid potential restrictions from the
BIOSECURE Act, which aims to prevent biotech companies from certain foreign
adversaries, including China, from accessing U.S. taxpayer dollars. Introduced
in January 2024 and amended in May 2024, the Act names companies such as WuXi
AppTec and WuXi Biologics and includes a clause allowing existing contracts
with Chinese firms to continue until January 1, 2032.
The BIOSECURE Act could have significant effects on the
industry, impacting both small and large companies that rely on Chinese
manufacturers for their products.