Samsung Biologics bags $514 mn CMO contract from US pharma

Samsung Biologics Co., the world’s largest contract manufacturing organization (CMO), said on Monday it has secured a $5.14 million order from a US pharmaceutical company.

Analysts expect the latest order to boost its 2025 revenue by nearly 30% compared to last year's record-high sales of 4.55 trillion won.

In January, Samsung Biologics secured its largest-ever CMO contract of $1.4 billion. It declined to disclose the names of the pharmaceutical companies that awarded the orders, citing confidentiality agreements.

The combined value of its orders received so far this year represents more than half of last year’s 5.40 trillion won in orders.

This month, Samsung added 180,000 liters of capacity with the launch of its fifth plant in Songdo, Incheon. That brought its total production capacity to 784,000 liters, the largest in the world.

Samsung Biologics is expanding its production capabilities beyond traditional antibody and messenger RNA (mRNA) therapies, recently initiating operations at a dedicated antibody-drug conjugate (ADC) manufacturing facility.

FIRST-QUARTER EARNINGS

In the first quarter of this year, the South Korean company posted its highest-ever quarterly sales of 1.30 trillion won, with operating profit more than doubling to 486.7 billion won.

Following the announcement of a new CMO deal, SK Securities revised upward its revenue forecast for Samsung Biologics to 5.88 trillion won in 2025, a 29.3% increase compared to the previous year.

Operating profit is projected to surge 46.2% on-year to 1.93 trillion won, according to the brokerage firm.

Write to Dae-Gyu Ahn at powerzanic@hankyung.com
 

Yeonhee Kim edited this article.