[BioUSA] Boston Becomes a 'Silent Battlefield' for CDMO Competition

All Major Domestic and International CDMOs Gather

'World's Largest Production Capacity' Samsung Biologics
Targets Early Completion of Plant 5 and 'Sustainability'
Domestic CDMOs Including Lotba, ST Pharm, and Binex Assemble

Global CDMOs Also Mobilize with Large Booths
Fujifilm, Lonza, Catalent, and Others Fully Participate

The '2023 BIO International Convention (BIO USA),' regarded as the world's largest bio event, has become a fierce battleground for global Contract Development and Manufacturing Organization (CDMO) companies. The event organizer, the Biotechnology Innovation Organization (BIO) of the United States, also set up a 'Bio Process Zone' near the main entrance of the Boston Convention & Exhibition Center, gathering CDMO booths, which drew significant attention from participants.

On the 5th (local time), visitors are lining up to enter the Bio International Convention (BIO USA) held in Boston, USA.
[Photo by Lee Chunhee]

Accordingly, domestic CDMO companies such as Samsung Biologics, Lotte Biologics, ST Pharm, Vinex, and Prestige BioPharma actively set up booths to compete for client acquisition.

Samsung Biologics, boasting the world's top production capacity of 604,000 liters with the full operation of its 4th plant?the crowning jewel of Incheon Songdo's 1st Bio Campus?started normal operations on the 1st. The company participated with a massive booth in the most prominent location within the Bio Process Zone.

On the opening day, May 5th (local time), the most eye-catching feature at the booth was the aerial view of the entire 2nd Bio Campus, including the 5th plant, which began construction in April. Samsung Biologics is accelerating the construction of the 5th plant, judging that orders for the newly fully operational 4th plant are nearly filled. John Rim, CEO of Samsung Biologics, stated on the day, "We will complete the construction of the 5th plant within 25 months." Earlier that day, Samsung Biologics announced that the expected completion date, originally September 30, 2025, has been moved up to April 1.

The 2nd Bio Campus, aiming to complete all plants by 2032, will have four plants all built with similar designs and identical production capacities of 180,000 liters. James Choi, Vice President and Head of Sales Support Center, explained that the plants are designed to be "efficiently developed through copy and paste." By constructing plants with the same design, they plan to significantly reduce construction time and costs.

James Choi, Vice President and Head of Sales Support Center at Samsung Biologics, is explaining the plan to establish the 2nd Bio Campus at the Samsung Biologics booth set up at the BIO International Convention (BIO USA), which opened on the 5th (local time).
[Photo by Lee Chunhee]

This year, Samsung Biologics emphasized 'sustainability' as a key capability beyond production capacity. The main theme at the booth was 'Your Sustainable Partner,' and all booth materials were made from eco-friendly materials. Unlike other booths, they used wood-tone sheets to create a distinctly different color scheme.

Vice President Choi explained, "To meet our clients' net-zero (carbon neutrality) goals, we must make the same efforts," adding, "Compared to last year, we digitized paper brochures and overall used sustainable materials that can be recycled." He noted that for RE100 compliance, the degree to which CDMO companies adhere is included in the clients' actual Scope 3 emissions, so efforts related to this are necessary. They also set a goal to reduce energy consumption by 20% in the construction of the 5th plant.

Following Lotte Biologics, ST Pharm and Vinex Also Participate with Their First Booths

Lotte Biologics, which made its international debut at BIO USA last year, participated this year with a larger booth. Unlike last year, when the acquisition of the Syracuse plant was not finalized and participation was more exploratory, this year they are expected to actively secure partners.

Michael Hausleiden, head of Lotte Biologics' U.S. branch, said at the booth, "Until this year, Bristol-Myers Squibb (BMS) orders account for 100% of plant operations, but this will decrease in the future," adding, "The focus this year is attracting new clients." Although stable operations are currently maintained under the order contract signed during the plant sale process with BMS, they are preparing plans to overcome potential future variables.

On the 5th (local time), Michael Hausleiden, head of the U.S. branch, was met at the Lotte Biologics booth set up at the BIO International Convention (BIO USA) held in Boston, USA.
[Photo by Lee Chunhee]

As the CDMO industry officially gains momentum, some domestic companies participated with their own booths at BIO USA for the first time. ST Pharm set up a solo booth highlighting oligonucleotide and messenger RNA (mRNA) CDMO services. An ST Pharm representative said, "Oligonucleotides have risen to a global ranking," and "Our goal this year is to secure mRNA clients, which is why we set up a booth for the first time." They added, "We have scheduled partnering meetings with about 30 to 40 companies this year," and "Since we came to Boston, we also held partnering meetings with local companies outside the event venue."

Vinex participated through the Korea Pavilion jointly organized by the Korea Bio Association and the Korea Trade-Investment Promotion Agency (KOTRA). A Vinex representative said, "We are preparing for a U.S. Food and Drug Administration (FDA) inspection in the second quarter of next year to obtain current Good Manufacturing Practice (cGMP) certification related to the production of biosimilars ordered from Celltrion," adding, "Once we receive cGMP certification, communication with U.S. clients will naturally become easier, so we decided to participate in BIO USA with a booth for the first time as part of our preparation starting this year."

On the 5th (local time), at the Bio International Convention (BioUSA) held in Boston, USA, Go Han-seung, Chairman of the Korea Bio Association (CEO of Samsung Bioepis), is talking with reporters.
[Photo by Lee Chun-hee]

Go Han-seung, Chairman of the Korea Bio Association and CEO of Samsung Bioepis, emphasized the importance of the CDMO industry. Chairman Go said, "It seems that the competitiveness of Korean CDMOs is widely recognized," and explained, "During the COVID-19 pandemic, the importance of sourcing production bases and cooperation systems by continent has been emphasized for CDMOs as well."

Regarding criticism that the Korean bio industry is overly focused on CDMO, he said it is difficult to see it that way. Chairman Go asserted, "There is definitely a trickle-down effect," emphasizing, "As you work in CDMO, you become an expert and gain the potential for success in other areas, leading to the creation of other companies or new things."

Global CDMOs Also Fully Mobilized... Fujifilm Calls Samsung Biologics a 'Key Competitor'

At the site, other global CDMO companies also set up large booths to attract partners. In particular, Fujifilm Diosynth set up the largest booth among participating companies. Lisa Rivera, Vice President of Global Marketing Communications at Fujifilm Diosynth, explained, "(We set up a large booth) because presentations, showcases, and partnering meetings are held daily at the booth," adding, "This is to ensure that all the various partners who come to us can attend." Regarding Samsung Biologics, she said, "They are a key competitor expanding large-scale production," and explained, "(Fujifilm) differentiates itself by having production capabilities for various modalities." Currently, Fujifilm has production capabilities for various modalities such as antibody-drug conjugates (ADC) and cell and gene therapies (CGT).

Booths of global CDMO companies participating in Bio International (BioUSA), which opened on the 5th (local time) in Boston, USA. Fujifilm Diosynth, Lonza, Catalent, and WuXi Biologics in order (clockwise from top left)
Photo by Lee Chunhee

Additionally, Lonza and Catalent, which hold the top global CDMO market shares, as well as KBI Biopharma, actively engaged in partnering through sizable booths.

On the other hand, Wuxi Biologics of China, which used to set up large booths and participate spectacularly before the pandemic, set up a modest booth again this year following last year. However, a Wuxi Biologics representative explained, "We are aware that other CDMO companies promote themselves with large booths, but we intend to pursue a slightly different strategy." Wuxi Biologics currently operates production facilities in the U.S. and Ireland and plans to start construction of a mega plant in Singapore within this year, aiming to begin operations around 2026. This will provide approximately 120,000 liters of production capacity.