Signed a 742.5 Billion KRW Contract with a US Pharmaceutical Company
Samsung Biologics has signed a large-scale contract manufacturing organization (CMO) agreement with a US-based pharmaceutical company worth over 700 billion KRW. In just four months this year, the company has already achieved more than half of last year's total annual order volume.
According to a disclosure by Samsung Biologics on April 28, the value of this CMO contract is $513.96 million (approximately 742.5 billion KRW). This is equivalent to 16.2% of last year's consolidated revenue (4.5473 trillion KRW), making it a major agreement. The contract period runs until December 31, 2031, and the counterparty will be disclosed later due to a confidentiality clause.
With this order, Samsung Biologics' cumulative order volume for this year has reached a total of 2.812 trillion KRW, surpassing half of last year's annual order volume (5.4035 trillion KRW). The company's annual order volume has shown rapid growth each year, from 1.7835 trillion KRW in 2022 to 3.5009 trillion KRW in 2023. There are expectations that this year's annual order volume will far exceed last year's figure.
In January, Samsung Biologics signed its first contract of the year with a Europe-based pharmaceutical company, valued at 2.0747 trillion KRW. This was the first contract worth over 2 trillion KRW in the company's history.
A representative from Samsung Biologics stated, "This is our second CMO order of the year, following the new contract worth 2 trillion KRW with a Europe-based pharmaceutical company. We will continue to prove our unrivaled global CMO competitiveness and steadily secure additional contracts."
Samsung Biologics' production capacity is expanding as rapidly as its cumulative order volume. This month, the company will begin operating its fifth plant, which has a capacity of 180,000 liters. Although a ramp-up period is needed to increase the plant's utilization rate through test production and commercial batch production, the company is expected to quickly handle order volumes after ramping up. With the operation of the fifth plant, Samsung Biologics' total production capacity has increased to 784,000 liters. Starting with the fifth plant, Samsung Biologics plans to add three more plants to its second Bio Campus by 2032, securing a total production capacity of 1,324,000 liters and maintaining its 'unrivaled' global production capacity lead.
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