SOUTH KOREA — In a remarkable show of strength, Samsung Biologics, a Contract Development and Manufacturing Organization (CDMO), has reported a staggering 33% increase in revenue in the second quarter.
The company reached KRW 866.2 billion (US$679.5 million) compared to KRW 651.4 billion (US$510.9 million) in the same period last year.
The company’s operating profit also soared by an impressive 49%, reaching KRW 253.4 billion (US$198.7 million).
CEO John Rim could not contain his enthusiasm as he proudly revealed the significant new deals with pharmaceutical giants Pfizer, Novartis, and Roche, which have played a pivotal role in driving the stable revenue growth for the second quarter.
One of these groundbreaking deals involves an expanded partnership with Pfizer, worth nearly US$900 million, aimed at the manufacturing of biologics.
The partners previously signed a contract for Samsung to produce biosimilar drugs in the fields of immunology, oncology, and inflammation, in addition to a US$193 million deal in March.
Additionally, Samsung Biologics secured a remarkable five-year agreement with Novartis valued at US$309 million for biologics manufacturing.
“Our consistent delivery of quality service and operational excellence, combined with our expanded strategic partnerships with top global pharmaceutical companies, have been instrumental in achieving this remarkable revenue growth in the second quarter,” Rim expressed proudly in a statement.
Aside from these transformative agreements, Samsung Bio has embarked on an ambitious expansion journey, which it aptly describes as “continuous capacity expansion.”
Earlier this year, the company announced its intention to begin the construction of Plant 5 in the first half of 2023, with plans to commence operations in 2025.
According to Rim, Samsung Biologics’ fifth manufacturing plant in Songdo is expected to start producing in April 2025.
The company has allocated a staggering 1.9 trillion South Korean won (US$1.46 billion) for this project, which will add an impressive 180,000 liters of capacity to its complex in Incheon, bringing the total capacity to an industry-leading 784,000 liters at a single site.
In 2023 alone, Samsung has secured an astounding cumulative sum of US$1.7 billion in manufacturing orders, cementing its position as a major player in the industry.
The recent regulatory filing indicates that the company has signed a momentous US$390.9 million deal to support Novartis in its drug production.
This builds on the already successful Samsung-Novartis collaboration that was worth US$81 million in June 2022.
While the Pfizer deal in June remains the largest, the Novartis partnership now stands as Samsung’s second-biggest production agreement ever, surpassing a US$360 million deal with AstraZeneca.
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