Samsung Biologics wins $897 mn in two deals with Pfizer
The world's largest contract drugmaker has signed its biggest-ever single deal; it will produce medicine until 2029
By Jul 04, 2023 (Gmt+09:00)
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Samsung Biologics Co., the world’s largest contract manufacturing organization (CMO) in terms of production capacity, said on Tuesday it has won a combined $897.2 million in two recent deals, including its largest-ever single contract, with US pharmaceutical behemoth Pfizer Inc.’s Irish operation.
The orders include a $704.4 million deal — the biotech’s biggest single contract since its inception in 2011. Samsung Biologics said the transaction value has expanded from the $411.4 million set at the time of signing the letter of intent last month, as Pfizer Ireland Pharmaceuticals has sought to increase its order of drugs for tumors, inflammation and autoimmune diseases.
The other deal, valued at $192.8 million, comes on the heels of a $182.7 million deal it clinched with Pfizer in March. The two companies did not disclose details on the types of pharmaceutical products involved.
Samsung Biologics will produce the medicine at its fourth plant in Songdo, Incheon, which launched operations on June 1. It is the world’s biggest biosimilar manufacturing facility with an annual production capacity of 240,000 liters.
The company runs four domestic plants with a combined manufacturing capacity of 604,000 liters per year. It aims to more than double production volume to 1.3 million liters by 2032 to further extend its lead over global rivals.
Samsung Group’s biotech unit has won 1.93 trillion won ($1.5 billion) in cumulative orders so far this year, surpassing last year’s revenue.
This year, the CMO sealed contracts with global pharmaceutical giants such as GSK plc, Eli Lily and Co. and F. Hoffmann-La Roche AG. The Korean biotech supplies biosimilars to 13 of the top 20 global drugmakers, including Johnson & Johnson, Merck Group, Novartis AG, Bristol-Myers Squibb Co., AstraZeneca plc and Moderna Inc.
To accelerate drug manufacturing, Samsung Biologics has reduced the period for technology transfer to three months, half the industry average. It has achieved 231 marketing approvals from global medical regulatory authorities like the US Food and Drug Administration and European Medicines Agency.
Write to Dae-Kyu Ahn at powerzanic@hankyung.com
Jihyun Kim edited this article.
