Samsung Biologics Forecasts 10–15% Revenue Growth in 2024 Amid Strong CDMO Momentum and Record Contracts

Jan 27, 2024 19:25 CST Updated 19:25

Samsung Bioepis

Biosimilar Developer

Disclaimer: Due to limited expertise, errors are inevitable, and some information may not be the most up-to-date. Comments pointing out any issues are welcome. This article is only an introduction to medical and health-related drugs, not a recommendation of treatment options (if involved); it does not constitute any investment advice.

January 24, 2024Samsung Biologics, a subsidiary of Samsung Group focusing on the CDMO field of biopharmaceuticalsAnnounced Strong Financial Results for Fiscal Year 2023 and the Fourth Quarter:

Comprehensive revenue for the year in China: 36,946KRW 100 million (approximately USD 2.764 billion), a year-on-year increase of 23.1%Annual ComprehensiveOperating profit was 1,113.7 billion won (approximately 8.33 billion USD), a year-on-year increase of 13.2%. Samsung Bioepis showed even stronger results in Q4.Strong performance growth,Q4 consolidated revenue was 1,073.5 billion KRW (approximately 8.03 billion USD), representing an 11.2% year-over-year increase.

Samsung Bioepis Predicts Rising Sales in 2024Revenue is expected to grow by 10-15%.

Samsung Bioepis stated that the main reason for the revenue growthThanks to Plant 4（Plant 4）Successful production and strong sales backlog。Factory 4 includes Phase 1 and Phase 2, with a total capacity of 240,000 liters.，It is expected that by 2025No. 4The new facilities within the factory will contribute around 30% of the active pharmaceutical ingredient manufacturing revenue.。In addition, Samsung Bioepis is constructing Plant 5, with operations expected to commence in April 2025.

Contract Volume of Samsung Bioepis in 2023Hit a new all-time high,Reached multiple large-scale deals with global pharmaceutical giants such as Pfizer, Novartis, GSK, and BMS,Contracts worth more than 12 billion US dollars have been signed cumulatively.The number of top 20 global pharmaceutical clients increased from 12 in 2022 to 14 in 2023.

September 2023，Samsung Biologics Signs $242 Million (Approx. 1.767 Billion RMB) Production Contract with Swords Laboratories, a Subsidiary of Bristol-Myers Squibb, for Antibody-Based Oncology Drugs Until 2030. Under this new agreement, Samsung Biologics will provide manufacturing services at its latest and largest Plant 4 biomanufacturing facility located in Songdo, South Korea.
July 2023Samsung Bioepis received an order from Novartis and signed a five-year agreement worth nearly $391 million. This five-year production and supply agreement will focus on the manufacturing of active pharmaceutical ingredients, spanning from 2024 to 2028.
2023July，Samsung Bioepis Announces Two Agreements with Pfizer Worth a Total of $897 Million, Including a $704 Million Contract and a $193 Million Order, Which is a Follow-up Order to a Deal Announced in March.
2023JuneSamsung Bioepis has also signed a long-term agreement worth $411.3 million with Pfizer, under which Samsung Bioepis will manufacture drugs for Pfizer. However, the two companies did not disclose the duration of the "long-term" contract.

Samsung Bioepis is also actively expanding its ADC pipeline. In April last year, Samsung Bioepis partnered with Swiss company Araris Biotech, which owns its own ADC linker technology — “Ara Linker.” In September, Samsung Bioepis made an equity investment in Aimd Bio, a South Korean biotech company with a substantial ADC pipeline.

Currently, three products in the pipeline (SB15, SB16, SB17) are being prepared for market launch, and six undisclosed products are under development.

Reference: Company official website