Samsung Biologics signs largest-ever $1.2 billion deal

Home > Business > Industry

Samsung Biologics signs largest-ever $1.2 billion deal

Published: 22 Oct. 2024, 15:36

LEE JAE-LIM
[email protected]

Audio report: written by reporters, read by AI

Samsung Biologics' logo displayed at its office in Incheon [NEWS1]

Samsung Biologics signed a 1.7 trillion won ($1.2 billion) deal with an unnamed Asian pharmaceutical company to provide contract manufacturing organization services, the largest contract secured in the company's history.

The pharmaceutical firm said the contract, the specifics of which it has not disclosed due to confidentiality clauses, will last until Dec. 31, 2037, in an electronics disclosure filed Tuesday.

The contract follows a $1.06 billion contract Samsung Biologics signed in July with an undisclosed U.S. pharma company.

With the deal, Samsung Biologics logged 4.36 trillion won in cumulative annual orders, its highest-ever figure. The company signed a total of nine contracts with global pharmaceutical companies this year, beginning with its first contract in March.

Samsung's pharmaceutical arm is also expanding its production capacity to keep up with growing demand from the bio market. It is in the process of building its fifth plant in Songdo, Incheon, which aims to begin operation next April.

Upon completion, the company will secure a manufacturing capacity of 784,000 liters (828,000 quarts) per year, moving closer to its goal of a production capacity of 1.32 million liters per year by 2032.

The firm has been on the move to strengthen its business relations with global companies this year.

It attended the BIO International Convention in San Diego as well as the 2024 Convention on Pharmaceutical Ingredients in Milan, Italy in June and Bio Japan 2024 in Yokohama, Japan, this month.

The firm plans to open a regional office in Tokyo within Samsung Electronics’ Japanese headquarters, although the establishment date has not been disclosed as of yet.

It has received a total of 326 drug approvals from regulators worldwide since its establishment in 2011, including 34 from the U.S. Food and Drug Administration.

BY LEE JAE-LIM [[email protected]]