Samsung Biologics reaches record-breaking annual orders

It secured a $588 mn CMO contract with an Asian pharmaceutical firm and the total order amount is doubled to last year

Samsung Group leader Jay Y. Lee checks out the fourth plant of Samsung Biologics in Songdo, Incheon, South Korea on Oct. 11, 2022 (File photo, courtesy of Samsung)

Dae-Kyu Ahn 1

2023-11-28 16:47:09 powerzanic@hankyung.com

Bio & Pharma

Samsung Biologics Co., the world’s top contract manufacturing organization (CMO) by capacity, surpassed the annual contract manufacturing order amount of 3 trillion won ($2.3 billion) for the first time, experiencing a sharp increase.

The company announced on Tuesday that it secured five CMO contracts with an Asian pharmaceutical company. It did not disclose the name of the ordering company and product as per the request of the contracting party.

The order amounts through new and expanded contracts are 588.8 billion won ($456 million) and 171.9 billion won ($133 million), respectively, resulting in a total increased order amount of 760.8 billion won ($588.6 million).

As a result, the company's cumulative annual order amount has reached 3,486.7 billion won ($2.7 billion), surpassing the initial expected amount of 3 trillion won ($2.3 billion). This year's cumulative order amount is nearly double the previous year's order amount of 1,783.5 billion won ($1.4 billion).

Samsung Biologics stated that global pharmaceutical companies are expanding contract products or increasing the production scale of previously contracted quantities to strengthen partnerships after the initial contract.

Additionally, the company added that among the newly announced contracts and expanded contracts this year, there are a total of nine large contracts exceeding 100 billion won ($77.4 million).

Consequently, last month, Samsung Biologics revised its annual sales forecast upward for this year from 3,526.5 billion won ($2.73 billion) to 3,601.6 billion won ($2.79 billion).

Write to Dae-Kyu Ahn at powerzanic@hankyung.com