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Samsung Biologics signs deal with Pfizer Ireland Pharmaceuticals

Published: 02 Mar. 2023, 18:10

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

Samsung Biologics inked a $183 million contract manufacturing organization (CMO) deal with Pfizer Ireland Pharmaceuticals.

The amount accounts for 15 percent of the company's total sales in 2021. The contract runs until Dec. 31, 2029.

CMO refers to companies that provide drug manufacturing services on a contract basis. It is the first time for the Korean company to sign a deal with Pfizer.

With the latest announcement, Samsung Biologics now has seven of the world's 10 largest pharmaceutical companies as clients.

Established in 2011, Samsung Biologics recently started partial operation of its fourth plant, in Songdo, Incheon, which will have a capacity of 240,000 liters when fully operational in June. It is the world’s largest single pharmaceutical manufacturing facility.

The company already signed 11 deals with eight global pharmaceutical companies for the plant, and is in talks with 26 potential clients.

The latest plant will likely bring the company's annual production capacity to 604,000 liters, which Samsung Biologics says is equivalent to nearly 30 percent of the global contract manufacturing market for biopharmaceuticals.

Samsung Biologics will invest 7.5 trillion won ($5.7 billion) in the construction of four new factories in a new manufacturing complex next to its existing plants in Songdo.

BY SARAH CHEA [[email protected]]