Samsung Biologics CEO says speed, employees put company ahead

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Samsung Biologics CEO says speed, employees put company ahead

Published: 15 Jun. 2022, 13:26

Samsung Biologics CEO John Rim talks to reporters during a press conference Monday on the sidelines of the BIO International Convention in San Diego. [SAMSUNG BIOLOGICS]

SAN DIEGO — Speed and talented employees are the two edges of Samsung Biologics, said CEO John Rim on the sidelines of the BIO International Convention (BIO USA) Monday.

“Samsung Biologics finished the construction of three plants in only seven years,” Rim said. “I’ve worked in a few global biopharmaceutical firms, but never saw any companies that could do what we can.”

It was Rim’s first offline press conference with Korean reporters since he was appointed as the CEO in December 2020. Samsung Biologics opened a booth at BIO USA 2022, often referred to as the CES of biopharmaceuticals, which is being held in San Diego from June 13 to 16.

Established in 2011, the company currently has three contract development and manufacturing organization (CDMO) plants in Songdo, Incheon, which makes it the No. 1 CDMO by capacity globally. CDMOs engage in the early stages of developing a client’s products and also take charge of mass production.

It is currently constructing a fourth plant in Songdo and plans to start partial operation in October, six months ahead of schedule. Full operations will be underway by the second quarter of 2023.

"It normally takes four years to construct a facility, but we are nearly two times faster than our competitors,” Rim said. "We have very many young talented employees and smart people largely contributed to the growth of Samsung Biologics."

Samsung Biologics currently has around 6,000 employees, from about 50 when it was first established.

For big global companies, how quickly CDMOs can manufacture their products is one of the most important factors of their business. Samsung Biologics has never missed a deadline, and often time gets the job done ahead of schedule, according to Rim.

In terms of competitors, Switzerland-based Lonza is one of the world's top 3 CDMO companies along with Samsung Biologics and Germany's Boehringer Ingelheim.

“We already beat Lonza in terms of capacity,” Rim said.

When asked about his plans to construct plants overseas, Rim said he is eyeing the United States as the location for the company's first overseas plant, denying multiple local and foreign reports that Samsung is in talks with the Irish government about building a plant there.

"I've never been to Ireland," Rim said. "We are open to all possibilities, and the United States is always our priority."

Samsung Biologics' third plant in Songdo, Incheon [SAMSUNG BIOLOGICS]

On plans for new drug development, Rim said Samsung will do it at some time in the future, but will take a very cautious approach.

“Starting clinical trials does not mean anything, the success rate of developing a new drug stands at less than 10 percent,” he said. “It is a very high-risk sector and we definitely need a step-by-step approach.”

Rim was also skeptical of the future of the cell and gene therapy industry, which many Korean companies have been making massive investments in recently. The demand for cell and gene therapies is too low at the moment, he said.

“Many companies all over the world have constructed their cell and gene therapy plants, and many of them are up for sale already as it is not yet a profitable sector,” he said. “The time is not yet ripe for it.”

Cellular and gene therapies use both the human body’s cells and genetic information to fight diseases and can offer a personalized approach and maximize efficacy by reducing side effects.

Only 88 cell and gene therapy products have been approved globally so far, of which 49 are being sold. Biogen’s Spinraza spinal muscular atrophy treatment, Novartis’ leukemia treatment Kymriah and Gilead Sciences’ lymphoma treatment Yescarta are a few blockbuster drugs in the industry.

Rim also said he welcomes Lotte’s entrance into the biopharmaceutical industry. Lotte is participating in BIO USA 2022 with its own booth, marking the company’s first time to join the conference.

The booth is run by Lotte Biologics, a biopharmaceutical subsidiary of Lotte. Lotte registered a trademark for Lotte Biologics on April 27, according to the Korea Intellectual Property Rights Information Service.

"Considering the long-term future, it is good that a Korean company does CDMO business," Rim explained. “Throughout the pandemic, we now all realized the need of having our own, like K-vaccine and K-bio."

“It is good that we could offer our customer companies the opportunities to have more options.”

Samsung Biologics has signed $7.9 billion worth of deals so far and has many global big pharmaceutical companies as customers, including AstraZeneca, GlaxoSmithKline, Eli Lilly and Moderna.

Earlier in the year, Samsung Electronics said it and related companies will invest 450 trillion won ($350 billion) over the course of the next five years in future businesses like chips and biopharmaceuticals.

BY SARAH CHEA [chea.sarah@joongang.co.kr]