CDMO Samsung Biologics hits record high with South Korean sales exceeding 3 trillion won in 2023

Samsung Biologics, one of the world’s largest contract development and manufacturing organizations, is kicking off 2023 with the announcement that it has reached a record annual sales level of more than 3 trillion South Korean won (about $2.3 billion) . CDMO has contracts with 15 of the world’s 20 largest pharmaceutical companies, including Pfizer, Bristol Myers Squibb and Novartis.

“We are building a solid trust relationship with our customers, and after the initial contract, we are looking at contract product expansion or increasing the scale of production for existing contracted volumes, all while strengthening partnerships with major pharmaceutical companies. Are,” a spokesperson said. Samsung Biologics told korea times,

The announcement of the most recent sales figures follows Samsung Biologics’ third-quarter earnings report, in which it announced it surpassed 1 trillion won for Q3, marking the first time that the company has surpassed 1 trillion won in a single quarter. Have done.

“Our growing partnerships with global leading pharmaceutical companies and a growing sales backlog reflect the confidence our customers have in us and our capabilities,” John Rimm, president and CEO of Samsung Biologics, said in a statement on the report.

He spoke about the company’s plans to continue expanding its portfolio and building new facilities in the coming year.

“Looking ahead, our expansion plans, which also include the construction [antibody-drug conjugates] The facility and Plant 5 will meet growing market demand and support our customers’ needs for both capacity and business diversification.

CDMO sales growth

Samsung Biologics’ sales growth comes amid a backdrop of broader CDMO industry growth, as more pharmaceutical companies decide to outsource manufacturing services to focus on research and development. Some experts estimate the current value of the industry at more than $200 billion, projected to reach $300 billion by 2028.

Exceeding 3 trillion won in annual contracts for the first time – double the value from last year – Samsung Biologics is a major player in the development of this industry. In its most recent earnings report, the company highlighted several other notable achievements it has made this year.

Its revenue of more than 1 trillion won in Q3 was 18.4% higher than revenue of 873 billion won in Q3 2022. The company also saw a substantial increase in net profit, which reached 240 billion won, an 86% increase from 129 billion won in the third quarter of 2022. Earnings before interest, taxes, depreciation and amortization also rose 11.6% year on year, from 409 billion won to 457 billion won.

Facility and Portfolio Expansion

Samsung Biologics has used its growing revenues to invest in expanding its facilities and portfolio. The latest examples are the completion of Plant 4 in June 2023, the world’s largest biomanufacturing facility based on a single plant, and the start of construction of Plant 5, scheduled for completion in 2025.

Currently, CDMO has the largest capacity in the industry, with 604,000 liters headquartered in Songdo, South Korea. The completion of Plant 5 will increase the total capacity to 784,000 litres. Plant 5 is the first of several planned manufacturing plants at the company’s second bio campus. It purchased 357,366 square meters (about 88.3 acres) of land in the Incheon Free Economic Zone to build the new facility, which will also house an innovation hub to help foster startups. Samsung Biologics is going to invest 7.5 trillion won in the construction of Bio Campus II.

“Given the continued growth in demand for outsourced manufacturing of biopharmaceuticals, we are committed to further strengthening our position as a leading CDMO in line with our growth strategy,” RIM said in an announcement regarding the start of construction on Plant 5. “Are actively making this investment.” “The new facility will enable us to provide even greater innovation and services to our customers while increasing speed and flexibility to market.”

In terms of portfolio expansion, Samsung Biologics has invested in several startups through Samsung Life Science Fund, a joint venture between Samsung Biologics and Samsung C&T. The fund has backed gene therapeutic drug developer Jaguar Gene Therapy, US nano-medicine startup Senda Bioscience and antibody-drug conjugate developer Araris Biotech AG.

Going forward, the company has expressed interest in pursuing novel therapies in areas such as ADCs and specific antibodies in addition to its core expertise in monoclonal antibodies.