Samsung Biologics plans sixth CDMO plant in Incheon by 2027
Published: 15 Jan. 2025, 14:31
Updated: 15 Jan. 2025, 18:29
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- LEE JAE-LIM
- [email protected]
Audio report: written by reporters, read by AI
![Samsung Biologics CEO John Rim presents during the 43rd J.P. Morgan Healthcare Conference at the Westin St. Francis Hotel in San Francisco on Jan. 14. [SAMSUNG BIOLOGICS]](https://koreajoongangdaily.joins.com/data/photo/2025/01/15/4934e1e0-3743-42f6-93cc-12641771c147.jpg)
Samsung Biologics CEO John Rim presents during the 43rd J.P. Morgan Healthcare Conference at the Westin St. Francis Hotel in San Francisco on Jan. 14. [SAMSUNG BIOLOGICS]
SAN FRANCISCO — Samsung Biologics is still testing the waters when it comes to foreign mergers and acquisitions (M&A). Meanwhile, it is expanding its production facilities in Incheon, focusing on its existing lucrative pipeline of contract manufacturing.
The Korean drugmaker is looking to build a sixth contract development and manufacturing organization (CDMO) plant on its second bio campus in Songdo, Incheon, Samsung Biologics CEO John Rim said in his keynote presentation on Tuesday during the J.P. Morgan Healthcare Conference at the Westin St. Francis Hotel in San Francisco.
“We’re beginning to look at Plant 6,” Rim said. “We’re near the trigger point, so we will make the decision once the board of directors approves that decision.”
Rim aims to get the board approval within the year and complete the plant by 2027.
The decision comes even before the company’s fifth plant is set to commence operations by April 2025. Plant 5 will add 180,000 liters (47,551 gallons) of manufacturing capacity, and another 180,000 liters from Plant 6 will bring its total capacity to 964,000 liters in 2027.
On Monday, the company announced a record $1.41 billion CDMO deal with an unnamed European pharmaceutical company. Last year, combined CDMO deals were worth 5.4 trillion won ($3.7 billion), the highest that the company has made and more than 50 percent growth from 2022.
Its total accumulated order value, since its founding in 2011, has exceeded $17.6 billion from deals with 17 of the top 20 pharma giants globally by market capitalization, including GlaxoSmithKline, Eli Lilly and Company, AstraZeneca, Moderna and Novartis.
Rim noted that while he has been exploring M&A in the United States, the factories must align with the company’s goal of timely product delivery and offer the flexibility to meet customers’ specifications. Acquiring a plant wouldn’t guarantee immediate operation, as significant renovations or process adjustments might be necessary, potentially delaying production.
“We’ve built more plants than, I think, anyone in the world,” Rim said. “We’ve just come to the conclusion, sometimes, that greenfield development is a lot more efficient, effective and cost-effective for us than acquisitions. We’ve looked at multiple geographies, and so far, we’ve determined that we can achieve better outcomes by building our own facilities where our business bases are located, and that’s been our primary focus. However, we’re always open to opportunities — there may be the right company or the right facility that meets our criteria. From that perspective, we’re very prudent financial investors.”
The CEO was adamant on having no immediate plans to develop original drugs, something that rival Celltrion has set in motion in developing both biosimilars and original drugs.
![Samsung Biologics CEO John Rim presents during the 43rd J.P. Morgan Healthcare Conference at the Westin St. Francis Hotel in San Francisco on Jan. 14. [SAMSUNG BIOLOGICS]](https://koreajoongangdaily.joins.com/data/photo/2025/01/15/c2b247f3-0008-43f9-ae7e-eb815271c515.jpg)
Samsung Biologics CEO John Rim presents during the 43rd J.P. Morgan Healthcare Conference at the Westin St. Francis Hotel in San Francisco on Jan. 14. [SAMSUNG BIOLOGICS]
The existing pipeline is, as of now, robust enough to grow the company further — Samsung Biologics has raised its annual revenue growth guidance to a range of 15 to 20 percent, projecting to surpass 4 trillion won for 2024, which would make it the first Korean biotech company to achieve this revenue milestone. Earnings will be announced next week.
The company is, however, making plans to add new portfolios in antibody-drug conjugates (ADC) for cancer treatment and cell and gene therapies (CGT). Last week, it announced an extended partnership with LigaChem Biosciences, under which it will support the latter’s ADC programs at the former’s recently completed facility in Songdo.
Samsung Biologics’ next market line of reach is Japan. It recently opened a sales office in Tokyo to expand its client base into the Japanese market.
“We want to get into the top 40 customers versus the 20 that we had before […] to increase the market share within our customer base,” Rim said.
BY LEE JAE-LIM [[email protected]]
with the Korea JoongAng Daily
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