Samsung Biologics to Increase Sales by 1 Trillion Won This Year with 'Plant 4, ADC, and Japan Partnership'

Samsung Biologics Plant 4 exterior. Photo by Samsung Biologics

Samsung Biologics, the first Korean pharmaceutical and bio company in history to surpass 4 trillion won in sales, is aiming to increase its sales by more than 1 trillion won again this year. The ramp-up of Plant 4, ADC (antibody-drug conjugates), and partnerships with Japanese companies are key factors for sales growth this year.

According to the Financial Supervisory Service's electronic disclosure system on the 17th, Samsung Biologics presented a sales guidance of 5.5705 trillion won for this year. This represents an expected increase of about 22.5%, or more than 1 trillion won, compared to last year's sales of 4.5473 trillion won. Samsung Biologics is expected to smoothly enter the '5 trillion club' following last year's entry into the '4 trillion club.'

John Rim, CEO of Samsung Biologics, stated at the regular shareholders' meeting on the 14th, "We want to make this year the first year of new opportunities," adding, "Following the completion of Plant 5 scheduled for next month, we also plan to start construction of Plant 6. We aim to maintain the world's number one production capacity."

This year's sales increase is expected to be driven by the ramp-up of Plant 4. Even when a biopharmaceutical contract development and manufacturing organization (CDMO) plant is completed, it cannot immediately operate at full production capacity. The plant's operation must be checked for normal functioning, the operating rate increased, and regulatory approval obtained. The industry generally estimates that this process takes 1 to 2 years.

Currently, Samsung Biologics is operating Plants 1 to 3 at full capacity, and Plant 4, completed in 2023, is in the process of increasing its operating rate. Because of this, Samsung Biologics' plant operating rate fell from 78.4% in 2022 to 71.4% in 2023 when Plant 4 was completed. Last year, the operating rate rose again to 75.2%.

Considering reactor replacements and other factors, the industry views the full operating rate of CDMO plants to be around 80%. Plant 5, which is scheduled for completion next month, is also not expected to have a significant impact on this year's performance. The company expects Plant 5 to enter full-scale production starting in 2026. Samsung Biologics' total production capacity will increase to 784,000 liters.

Additional orders for ADC new drugs, added as a new business portfolio, are also anticipated. Samsung Biologics is expanding its business area to next-generation anticancer drug technology, antibody-drug conjugates (ADC), following antibody drugs and messenger RNA (mRNA) vaccines. In December last year, it completed a dedicated ADC production facility and plans to establish an ADC drug product (DP) production line by the first quarter of 2027.

ADC, known as a "guided missile" that targets cancer cells, is a core technology for next-generation anticancer drugs. By attaching drugs to antibodies to deliver them precisely to cancer cells, it offers higher therapeutic effects than conventional anticancer drugs and prevents damage to normal cells.

CEO John Rim said, "We plan to expand services by strengthening expertise not only in ADC but also in new modality fields such as adenovirus-related viruses and cell and gene therapies."

Collaboration with Japanese pharmaceutical and bio companies is also being pursued. Samsung Biologics currently has 17 of the top 20 global pharmaceutical companies as clients. Last year, it opened a sales office in Tokyo, Japan, and plans to strengthen partnerships mainly with pharmaceutical companies ranked 20th to 40th, which are mostly Japanese pharmaceutical and bio companies. Regarding global business expansion, CEO John Rim said, "We have been successfully operating sales offices in Boston and New Jersey in the U.S., and this year we plan to expand the role of the Tokyo sales office to further strengthen partnerships with Asian clients."