Samsung Bio, 385 Billion KRW Biopharmaceutical Contract with AstraZeneca

"Contract Amount May Increase to 634.9 Billion Won Due to Rising Client Demand"

[Asia Economy Reporter Seo So-jung] Samsung Biologics (CEO: Kim Tae-han) announced on the 22nd that it has signed a long-term contract for the contract manufacturing organization (CMO) of biopharmaceuticals with AstraZeneca, worth $330.8 million (385 billion KRW) based on a minimum guaranteed amount.

This contract is the formal agreement following the letter of intent (LOI) signed in June. The scope of this contract includes the production of drug substance and finished drug product biopharmaceuticals. The contract amount may increase to $545.6 million (634.9 billion KRW) depending on future customer demand.

According to the contract, Samsung Biologics will carry out large-scale commercial production of AstraZeneca's biopharmaceuticals. Samsung Biologics plans to produce these biopharmaceuticals at its Plant 3, which has the world's largest production capacity (CAPA) for a single plant.

Through this contract, AstraZeneca plans to expand its production capabilities in the Asia-Pacific region and actively collaborate with Korean bio and health specialized companies.

Kim Tae-han, CEO of Samsung Biologics, said, "We are very pleased to become new partners with AstraZeneca," adding, "We will do our best to satisfy our customers through Samsung Biologics' world-class cutting-edge production facilities and innovative solutions."

Pam Cheng, Executive Vice President and Head of Global Operations and IT at AstraZeneca, said, "Through this new long-term partnership with Samsung Biologics, we have strengthened our production capabilities, enabling us to supply both existing and new biopharmaceuticals to patients worldwide with high quality and greater speed."

Meanwhile, prior to this contract, the signing ceremony held on June 25 at Samsung Biologics headquarters in Songdo was attended by Kim Sang-pyo, CEO of AstraZeneca Korea; Kim Tae-han, CEO of Samsung Biologics; Kim Jae-jun, Director of the Bio Convergence Industry Division at the Ministry of Trade, Industry and Energy; and Jeong Tae-gil, Director of the Health Industry Promotion Division at the Ministry of Health and Welfare, among other government officials.

Leif Johansson, Chairman, and Margarita Ozolins Nordbvel, Vice President in charge of product supply in the Asia-Pacific region, along with other AstraZeneca headquarters executives, attended online due to the COVID-19 pandemic.