Samsung Biologics Secures $242 Million CDMO Deal with BMS for Oncology Antibody Production Through 2030

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2023Year for Samsung Biologics(Samsung Biologics)It has been a busy year so far, and the company has already secured deals worth23Manufacturing contract worth hundreds of millions of dollars.

Recently, Samsung BioLogics and a subsidiary of Bristol-Myers SquibbSwords LaboratoriesSigned a contract worth2.42Billion USD (approximately17.67RMB) production contract, will be produced until2030Year antibody anti-tumor drugs. According to this new agreement, Samsung BioLogics will utilize its latest and largest facility located in Songdo, South Korea.4Biofactory Manufacturing Plant provides production services.

President and CEO of Samsung BioLogicsJohn RimSaid in a statement:"Our collaboration with Bristol-Myers Squibb has lasted for more than a decade, and we are proud and excited to help bring important medicines to patients around the world."

In2022Annual sales as the standard,BMSIs the world's7Large biopharmaceutical enterprises, from2013Since Samsung Biologics began its contract manufacturing organization business in year, it has been a client of Samsung Biologics. Samsung Biologics stated.:"As of this year9In the month, Samsung Biologics collaborated with the world20In large pharmaceutical enterprises14"The home country has signed a production contract." Plus, the recent agreement withBMSThe transactions, as well as a series of large-scale agreements with international pharmaceutical companies such as Pfizer and Novartis this year, have brought Samsung Biologics' annual cumulative order amount to2.7Trillion Korean Won(Approximately23Billion US dollars). This value may increase further as the contracts are typically in the form of minimum revenue or minimum compensation, meaning they can be expanded according to client requirements.CompanyRepresentation:“Samsung Biologics recently signed new contracts, eliminating concerns aboutCMOConcerns about excess market capacity." Since the beginning of this year, the4The factory has consecutively closed large deals, and the5The prospect of the factory is also optimistic."

Samsung BiologicsThis year6Began operating the fourth plant in the month. The company has been accumulating plant orders this year, increasing the utilization rate of its plants, although it did not disclose the specific rate. The production capacity of the fifth plant is18Milliliters, will be2025Year4Began operations after completion in the month.Once operational, the integrated production capacity of Samsung Biologics will reach78.4Wan Sheng,Will maintain the world's largest production capacity. In addition, Samsung Biologics from the3At the beginning of the quarter, the4The factory's operating revenue is included in the performance report, and it is expected this year...3The performance of the quarter will improve. The net profit for the second quarter is1849Million Korean won, increased by21.6%。

As of July this year, the total order value with Pfizer reached $1.08 billion. In addition to Pfizer, Samsung Biologics also reached deals this year with major pharmaceutical companies such as Eli Lilly, GSK, and Roche.

As a competitor, Wuxi Biologics disclosed in its financial report that as of2023Year6Month30Day, Total Unfilled Orders of the Company201Billion US dollars,Including incomplete service orders136Billion USD, Uncompleted Potential Milestone Payment Order65Billion USD. Total unfulfilled orders within three years35Billion US dollars.

Regarding Samsung Biologics' price-cutting bid, Wuxi Biologics once stated that it rejects low-price competition.Regarding order prices, in the first half of this year, WuXi Biologics mentioned during the Investor Open Day that Samsung BioLogics is currently securing projects at extremely low prices to fill its production capacity. WuXi has not lowered its prices to compete for projects because it serves a different customer base. Moreover, as this is an industry with long cycles, there is no need to pursue high capacity utilization in a short period.