On Wednesday, Samsung Biologics, a biopharmaceutical firm based in South Korea, proudly announced its outstanding performance in the past year, positioning itself as a formidable contender alongside leading global pharmaceutical companies. This remarkable achievement was propelled by a series of substantial contract manufacturing agreements.
In 2022, Samsung Biologics climbed 13 spots to secure the 37th position on GlobalData’s list of the world’s top 50 pharmaceutical companies. This remarkable ascent was driven by a substantial increase in revenue, jumping from $1.3 billion to $2.4 billion. Anticipating further growth in 2023, the company is projected to surpass 3.7 trillion won ($2.7 billion) in sales, marking the first time in its history that annual sales will exceed 3 trillion won.
Furthermore, Samsung Biologics is poised to achieve an operating profit of over 1 trillion won in 2023, making it the first Korean biopharmaceutical company to reach this milestone. The company has already reported impressive results for the first half of 2023, with approximately 1.6 trillion won in sales and 445 billion won in operating profit, even while accounting for expenses related to the construction of its fourth plant. Expectations are high for the third and fourth quarters, as revenues from Plant 4 are set to contribute to the company’s earnings.
Samsung Biologics’ rapid growth can be attributed to a series of significant contract manufacturing agreements, particularly under the leadership of CEO John Rim, starting in 2020. The company has secured contracts with 14 of the top 20 global pharmaceutical firms, including major players like GSK, Eli Lilly, AstraZeneca, Moderna, Novartis, Pfizer, and BMS. In 2023, its accumulated order value reached approximately 2.7 trillion won, driven by substantial contracts with Pfizer, Novartis, and BMS.
The company’s expansion has been further facilitated by its large production capacity, swift manufacturing processes, and consistent delivery of high-quality products. Many of its contracts are structured as minimum take or pay arrangements, allowing for expansion at the client’s request. In 2022, seven out of 11 contracts were expanded, increasing their combined value to 880 billion won. In 2023, seven contracts saw expansion, resulting in a combined value of 948 billion won.
Looking ahead, Samsung Biologics is set to accelerate its growth by securing new orders for its fifth plant, scheduled for completion in April 2025, with an annual manufacturing capacity of 180,000 liters. Additionally, the company plans to equip the fifth plant to accommodate antibody-drug conjugates and mRNA pipelines, meeting the rising demand for these innovative modalities
(Source: Shim Woo-hyun | The Korea Herald)
