Samsung Biologics Reaffirms Contract Competitiveness [Click e-Stock]

Record-Breaking 1.8 Trillion Won Order from US Pharmaceutical Firm
Concerns Over Orders Eased Amid Biosecurity Law Issues

Samsung Biologics has secured a contract worth 1.8 trillion won from a US-based pharmaceutical company. This achievement is seen as dispelling concerns about the company's competitiveness in winning contracts due to the absence of production facilities in the United States.

On September 10, Daishin Securities maintained its target price for Samsung Biologics at 1.3 million won and its "Buy" investment rating, citing this background. The previous day's closing price was 1,031,000 won.

The day before, Samsung Biologics announced that it had signed a contract manufacturing organization (CMO) agreement with a US-based pharmaceutical company valued at 1,294.64 million dollars (approximately 1.8001 trillion won). The contract period runs until December 31, 2029. The client company and product name have not been disclosed.

This contract is the second largest since the company's establishment in 2011. In January of this year, Samsung Biologics secured a contract worth 2 trillion won with a major European pharmaceutical company.

With this deal, Samsung Biologics' cumulative order amount has already reached 3.7 billion dollars, achieving 86% of last year's annual cumulative order amount of 4.3 billion dollars.

In particular, this contract is seen as alleviating concerns about Samsung Biologics' competitiveness in winning orders due to the absence of production facilities in the United States. Since taking office, US President Donald Trump has signaled tariffs on pharmaceuticals, prompting major foreign pharmaceutical companies such as Eli Lilly, Roche, and Novartis to announce plans to expand production facilities in the United States.

This contract is expected to resolve such concerns and, with the upcoming groundbreaking of the sixth plant in Songdo, Incheon, further demonstrate the robust demand for antibody drugs.

Currently, the US Biosecurity Law is being reintroduced in the form of the 2026 National Defense Authorization Act amendment, increasing the likelihood of its passage. The amendment stipulates the exclusion of equipment and services from "concerned biotechnology companies" from government contracts, subsidies, and loans.

Lee Heeyoung, a researcher at Daishin Securities, explained, "Unlike last year, the company names have been removed, and the law is being operated in conjunction with the Department of Defense 1260H (the Chinese military company list), which provides greater flexibility in enforcement and reduces litigation risk. Although no specific companies are named, Chinese firms will inevitably be the main targets. As Samsung Biologics has production bases in Asian allied countries excluding China and India, it is expected to benefit as a result."