John Rim, CEO, Announces at JPMHC
Expanding Three Pillars: Productivity, Portfolio, and Geographic Bases
Completion of 4th Plant Within the Year and Establishment of Second Campus
ADC Emerging as a 'Hot Item,' Production to Start Early Next Year
Plans to Open Office in New Jersey, USA
John Rim, CEO of Samsung Biologics, is delivering the main track presentation at the JP Morgan Healthcare Conference 2023 on the 11th (local time). [Photo by Samsung Biologics]
[Asia Economy Reporter Lee Chun-hee] Samsung Biologics has unveiled a growth strategy to become a top-tier bio company by expanding its "three pillars": production capacity, portfolio, and geographic bases. In addition to the world's largest Plant 4, the company is accelerating the development of a second bio campus capable of housing Plants 5 to 8, and is also exploring new modalities such as antibodies and antibody-drug conjugates (ADC). It is also pursuing the establishment of bases in key overseas regions including the United States.
John Rim, CEO of Samsung Biologics, stated at the 2023 JP Morgan Healthcare Conference (JPMHC) on the 11th (local time), "This year, we will actively pursue orders starting with Plant 4 and also expand production capacity through the second bio campus. We will increase our contract development and manufacturing organization (CDMO) portfolio with next-generation drugs such as antibody-drug conjugates (ADC) and gene therapies, and establish bases in major cities where global clients are concentrated, continuing growth centered on the three pillars."
JPMHC is an annual event hosted by the U.S. investment bank JP Morgan, attracting over 8,000 investors and more than 550 bio companies worldwide, making it a representative global pharmaceutical and bio investment conference. Samsung Biologics has been assigned to present on the main track, the most important track of JPMHC, for seven consecutive years since 2017. The presentation venue was also assigned the Grand Ballroom, which is reserved only for major global pharmaceutical companies, confirming the status Samsung Biologics has secured.
CEO John Rim first introduced Samsung Biologics' major achievements last year. As of the third quarter of last year, Samsung Biologics achieved a cumulative sales record of 2.0358 trillion KRW, marking the first time annual sales exceeded 2 trillion KRW. These results were underpinned by the partial operation start of the world's largest Plant 4 (240,000 liters) in October last year, the full acquisition of Samsung Bioepis as a subsidiary, and the launch of the bispecific antibody platform 'S-Dual' in the contract development (CDO) sector.
Last October, Lee Jae-yong, Vice Chairman of Samsung Electronics, attended the completion ceremony of Samsung Biologics' Plant 4 and applauded. Ko Han-seung, President of Samsung Bioepis; Vice Chairman Lee Jae-yong; John Rim, President of Samsung Biologics; and Choi Sung-an, President of Samsung Engineering (from left). [Photo by Samsung Electronics]
Building on these achievements, the company plans to pursue additional growth based on the "three pillars" this year. In terms of production capacity, Plant 4 will be completed within the year, securing an overwhelming global No. 1 production capacity of 604,000 liters in total. Currently, Plant 4 is producing contract manufacturing organization (CMO) products for 8 clients and 11 products, and discussions are underway for CMO production of 26 additional clients and 34 products. Furthermore, as the first bio campus site is reaching full capacity, Samsung Biologics has secured a new adjacent site of 357,000 square meters and will begin full-scale discussions on building the planned second bio campus. A total investment of 7.5 trillion KRW will be made to establish a large-scale biopharmaceutical production facility as well as an open innovation center.
Regarding the portfolio, the company is expanding into next-generation therapies such as ADCs and gene therapies. Work on ADCs has already begun, with production targeted for the first quarter of next year. ADCs, as the name suggests, are drugs that conjugate antibodies and drugs. They have recently become a hot topic in the bio industry due to a series of big deals. ADCs connect antibodies that bind to cancer antigens with cytotoxic drugs (payloads) via linkers, effectively delivering toxins only to cancer cells like guided missiles, making them a promising next-generation cancer treatment technology.
In terms of geographic bases, Samsung Biologics is continuing its expansion into the U.S. Following the establishment of a research and development (R&D) center in San Francisco in 2020, the company recently set up a sales office in Boston and plans to open another sales office in New Jersey, where major big pharma companies are located. The company intends to further expand its global network by establishing additional bases in key locations.
CEO John Rim concluded, "We will continue to make proactive and bold investments in line with Samsung's bio business vision and roadmap, aiming to establish ourselves as a top-tier bio company providing full-service by 2030."
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