Plant 5, Symbol of the 'CDMO Super-Gap'
Samsung Bioepis Headquarters, Marking 'New Drug Development Independence'
Chairman Lee Visits Two Symbolic Sites in Succession
Samsung Electronics Chairman Jay Y Lee visited the Songdo facility of Samsung Biologics just 19 days after the company announced its spin-off. It is being evaluated that he has shown support for both the CDMO (Contract Development and Manufacturing Organization) and new drug development businesses, each of which will become independent entities in October this year.
Samsung Electronics Vice Chairman Jay Y. Lee visited Samsung Biologics Songdo Campus in Yeonsu-gu, Incheon, in October 2022 to inspect the production facilities of Samsung Biologics Plant 4. Photo by Samsung Electronics
According to Samsung Biologics on June 10, Chairman Lee visited both Plant 5 of Samsung Biologics and the headquarters of Samsung Bioepis in Songdo, Incheon, the previous day. After touring the production process of Plant 5, which was completed in April, he reportedly held a meeting with key executives to review the future strategy of the bio business. On May 22, Samsung Biologics announced the establishment of 'Samsung Epis Holdings' through a simple physical spin-off, fully separating the CDMO business from the biosimilar business.
Plant 5 of Samsung Biologics is a symbolic site for the company's 'CDMO super-gap' strategy. Chairman Lee also visited the site in February last year when construction was in full swing. This is the first time he has officially visited a single bio plant more than once. Unlike the factories on Campus 1 (Plants 1 to 4), which each have different process designs and scales, Plant 5 is the first to apply a completely standardized 'cookie-cut' design method. This approach reduces design complexity and minimizes confusion among workers, which is considered a key advantage. The goal is to ensure quality stability in the production process.
The construction adopted the 'PC method,' which involves bringing pre-made reinforced concrete structures to the site and assembling the building like Lego blocks. All steps such as transporting, pouring, and curing cement with ready-mixed concrete are omitted. The construction period was shortened by more than five months. In addition to the production of conventional bispecific antibody drugs, Plant 5 is also capable of manufacturing next-generation biopharmaceuticals such as multispecific antibodies and antibody-drug conjugates (ADC).
All factories on Campus 2 (Plants 5 to 8), including Plant 5, are being built based on the same scale and design. With enhanced efficiency through plant and logistics automation, Plant 5 represents the culmination of Samsung Biologics' know-how and efforts to optimize operations since its founding in 2011.
With the completion of Plant 5, Samsung Biologics has now become the global leader in CDMO production capacity. As of this year, Samsung Biologics' production capacity stands at 784,000 liters, surpassing Lonza, the previous leader with 780,000 liters. Samsung Biologics plans to invest a total of 7.5 trillion won in Songdo Campus 2 (Plants 5 to 8) by 2032, increasing its capacity to 1,324,000 liters. The company aims to maintain a 30% share of the global market.
Samsung Electronics Vice Chairman Jay Y Lee is visiting Samsung Bioepis located in Songdo, Incheon, on October 11, 2022, touring the research center. Photo by Samsung Electronics
This visit drew particular attention as it came immediately after Samsung Biologics announced its spin-off. Following the split, the bio CDMO business will be managed by Samsung Biologics, while new drug development and bio investment will be handled by Samsung Epis Holdings. Chairman Lee's visit is interpreted as an effort to support Samsung Biologics in expanding its client base and maintaining its super-gap advantage, now that the company is focused on a 'pure CDMO' model without a new drug development subsidiary.
On the same day, after visiting Plant 5, Chairman Lee also visited the Samsung Bioepis headquarters, which will become Samsung Epis Holdings in October. This was his first visit to Samsung Bioepis in three years and eight months since October 2022. He reportedly received a private briefing from President Kim Kyunga and other key executives. After the company split, Samsung Bioepis plans to accelerate the development of antibody biosimilars as well as immunology and oncology new drugs.
Chairman Lee is known for his approachable style, often energizing the atmosphere during site visits by taking selfies and casually interacting with employees. However, this visit was different. It is said that, in light of the serious business environment and the significant decisions recently made within Samsung Biologics, he maintained a cautious and calm demeanor, refraining from contact with employees.
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