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Samsung Biologics' Plant 4. / Courtesy of Samsung Biologics

Samsung Biologics has signed a contract manufacturing organization (CMO) agreement worth approximately 434.3 billion won with a global pharmaceutical company. The company also increased the value of an existing contract with a U.S. pharmaceutical company by approximately 30.3 billion won the previous day, expanding its total contract value by around 464.6 billion won over two days. Samsung Biologics is broadening its order base through new agreements with global clients and increases in existing contract values.

On Nov. 3, Samsung Biologics disclosed that it had signed a CMO agreement worth 434,322.56 million won with a global pharmaceutical company. The amount represents 9.53% of its consolidated revenue of 4.5569 trillion won last year.

The contract runs from Nov. 2 through Dec. 31, 2031, a period of approximately five years and two months. Its value is $324.8 million, calculated using the exchange rate of 1,337.20 won per dollar as of Nov. 2. The client was not disclosed for business confidentiality reasons, with its identity scheduled to be revealed on Dec. 31, 2031.

The previous day, Samsung Biologics also disclosed that it had increased the value of an existing CMO contract with a U.S.-based pharmaceutical company from 32,527.73 million won to 62,824.22 million won. The increase of approximately 30.3 billion won, made at the client's request, represents a rise of about 93% from the previous contract value. The agreement was originally signed in November 2020 and runs through the end of 2030.

The company has been steadily building its order portfolio through partnerships with global pharmaceutical companies. According to its third-quarter earnings report released last month, Samsung Biologics had secured a cumulative 117 CMO contracts and 184 contract development organization (CDO) contracts since its establishment. At the time, the cumulative value of orders stood at $22 billion (approximately 29 trillion won). Including the latest contract, that figure has increased to $22.3 billion.

Samsung Biologics is also expanding its production capacity to meet growing order volumes. The company operates Plants 1 through 4 in Songdo, Incheon, while gradually ramping up production at Plant 5, which began operations last year. It is also working to stabilize commercial production at its Rockville manufacturing facility in the United States, acquired in March this year, as it expands its global manufacturing network.

The company is also strengthening its sales network to attract overseas clients. In August, it opened a European sales office in the Netherlands, establishing a sales network spanning the United States, Europe, Japan and the Asia-Pacific region. Through this network, the company aims to expand its connections with global pharmaceutical companies and secure new contract opportunities.

                                                                                                              Bae Da-hyun