NEWS DETAIL

Samsung Biologics Keeps Breaking Records in Order Receipt Amount

Samsung Biologics said Friday that it has broken the highest single order contract once again.



According to the company, its contract manufacturing organization (CMO) contract amount with Roche has increased from 444.4 billion won ($374.8 million) to 605.3 billion won.


It marked the first time that Samsung Biologics' CMO contract amount exceeded 600 billion won with one company. The previous largest order contract was signed with GlaxoSmithKline (GSK), which amounted to 508.7 billion won.


"Contracts with such are hard to find in the Korean biopharmaceutical industry, except for some technology transfer contracts," the company said. "In terms of sales, 600 billion won is also a baseline for entering the top sales rankers in the pharmaceutical industry."


In January, Samsung Biologics and Roche initially signed a contract worth 39.1 billion. The two companies expanded their agreement twice to 234.2 billion and 444.4 billion won in September.


If such contract expansion continues, industry insiders expect the contract may increase up to 1 trillion won.


Aside from Roche's contract, Samsung Biologics has won seven CMO contracts worth over 300 billion won. Moreover, the company concluded or expanded six out of the seven contracts worth over 300 billion won this year.


Samsung Biologics has also gradually increased its production capacity before expanding the CMO contract order scale.


The company has secured a total production capacity of 364,000 liters through its three plants and is currently constructing its fourth plant with a capacity of 256,000 liters. In addition, it recently announced a plan to construct two more plants.


"As large-scale order contracts can only be achieved based on positive evaluation and trust, the continued expansion of the CMO agreement can serve as a basis for Samsung Biologics to expand its consignment production business," Lee Jun-soo, an analyst for Prophet Asset Management, told Korea Biomedical Review.