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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.

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  • Jul 03, 2024

  • Mrudula Kulkarni

Samsung Bio secures a $1 billion manufacturing contract with an unnamed US pharma company

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.

 

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