Samsung Biologics scores $242M Bristol-Myers Squibb deal

Industry

Published: 18 Sep. 2023, 16:14 Updated: 18 Sep. 2023, 21:18

Samsung Biologics scores $242M Bristol-Myers Squibb deal

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

Samsung Biologics clinched another $242 million contract manufacturing deal from its long-standing customer Bristol-Myers Squibb (BMS), running through 2030, the Incheon-based biopharmaceutical company said Monday.

The latest deal adds to Samsung Biologics' streak of contract manufacturing organization (CMO) wins this year, which are nearing the 3-trillion-won ($2.26-billion) milestone for the first time.

CMOs refer to companies that provide drug manufacturing services on a contract basis.

With the signing of the contract with Swords Laboratories, a subsidiary of BMS, Samsung Biologics will produce the New Jersey-based company’s immuno-oncology drugs for the next seven years.

BMS is one of the largest pharmaceutical companies in the United States, ranking seventh among the world’s Big Pharma in terms of revenue last year.

The U.S. company was Samsung Biologics’ first customer in its CMO business. The partnership has lasted for more than a decade.

Samsung Biologics plans to utilize its fourth plant for the production of the BMS drugs. The fourth plant, which began operation in June, has an annual production capacity of 240,000 liters.

The company is currently building its fifth plant with a 180,000-liter capacity, due to be completed by April 2025. When the fifth plant is completed, Samsung’s total CMO capacity will rise to 784,000 liters.

Samsung Biologics racked up major CMO deals throughout the year, including a five-year, $391 million deal with Novartis and $897 million worth of deals with Pfizer Ireland Pharmaceuticals. The combined value of all of the CMO contracts signed by Samsung Biologics so far this year comes in at 2.7 trillion won, compared to last year’s total of 1.8 trillion won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]