Samsung Biologics Raises 2023 Guidance with Over $11.8 Billion in Contracts Secured

Dec 06, 2023 11:54 CST Updated 11:54

Samsung Bioepis

Biosimilar Developer

Recently, Samsung Bioepis Co., Ltd. announced its financial results for the third quarter of the 2023 fiscal year.

In the third quarter of 2023, Samsung Bioepis Co., Ltd.'s consolidated revenue exceeded 1 trillion Korean won for the first time, increasing by 18% compared to 873 billion won reported in the same period last year. This is attributed to factors such as the rapid increase in Plant 4's operation rate, leading to an expected annual growth of over 20% in consolidated revenue. The consolidated operating profit for the third quarter of 2023 reached 319 billion won, with a net profit of 240 billion won.

In addition, the company has expanded its strategic partnership network to include 14 of the top 20 global pharmaceutical companies, further solidifying its position as a trusted CDMO partner. As of October, Samsung Biologics' cumulative contract value exceeded $11.8 billion.

Samsung Bioepis stated in its financial report: Committed to meeting the growing demand for high-quality biologics. The company's expansion is proceeding as planned, with the newly constructed Plant 5 set to begin operations in April 2025, adding 180KL of capacity.As SamsungSamsung Bioepis' first plant in the second bio campus at its Songdo headquarters in Korea, Plant 5, is expected to have the shortest construction time of only 24 months, thanks to the company's standardized design, accumulated operational excellence, and mature expertise.

To expand its business portfolio, Samsung Bioepis' standalone Antibody-Drug Conjugate (ADC) manufacturing facility is expected to reach cGMP standards within 2024, aiming to develop and explore innovative technologies for next-generation biomedicine.This aligns with the company's strategic investment by the Samsung Life Science Fund, which aims to support biotechnology companies like AimedBio and Araris Biotech AG that are advancing ADC technology.

On July 10, 2023, Samsung Bioepis revealed that it is significantly expanding its 2022 contract manufacturing agreement with Novartis to assist the Swiss company in the production of biologics.Specifically, the cooperation agreement between Samsung Bioepis and Novartis expanded from an initial $81 million to $391 million, with the entire contract manufacturing agreement spanning five years.

On July 4, 2023, Samsung Bioepis announced an $897 million order with Pfizer. According to Endpoints News, this $897 million order is the result of Pfizer expanding its previous agreement with Samsung Bioepis. The order primarily involves the production of biosimilar products and originates from two contracts: one from March of this year, increased to $193 million, and another signed in June, revised to $704 million. Under the agreement, Samsung Bioepis will produce a variety of biosimilars, ranging from oncology, inflammation to immunotherapy, at its newly built fourth plant in Korea. The contract period extends until 2029.

Samsung Bioepis welcomed these orders, viewing them as an expansion of strategic partnerships, and added that from January to July this year, the company had secured contract amounts exceeding the total of last year.

It is reported that earlier this year, Samsung Bioepis also signed agreements with the Kinsale, Ireland branch of Eli Lilly (LLY.US) and GlaxoSmithKline (GSK.US), among others.

Source: Samsung Bioepis official website, WeChat Official Account "Cell and Gene Therapy Field"Zhitong Finance, PharmaCube, etc.

E.N.D

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