Samsung Biologics in CDO deal talks with global pharma firm

FRANKFURT – Samsung Biologics Co., the world’s largest contract drugmaker, is in talks to develop medicines for a global pharmaceutical company as the South Korean company seeks to elevate its status from a mere contract manufacturer.

The biotech unit of Korea’s top business group has focused on manufacturing drugs for others in a scheme known as a contract manufacturing organization (CMO) for over a decade.

The company now aims to solidify its leadership in the contract development and manufacturing organization (CDMO) market, however, which involves cooperation starting at the drug development stage, which is more profitable.

“Our drug development capabilities have grown to offer services for globally renowned pharmaceutical companies,” James Park, executive vice president and head of the global sales center at Samsung Biologics, told reporters on the sidelines of CPHI Worldwide 2022, an international pharmaceutical and bio industry conference in Frankfurt, Germany.

“We are currently in talks with one of the world’s top 10 pharmas over a CDO deal.”

Samsung Biologics, which began as a CMO, expanded its business scope to embrace CDO in 2018 to jointly develop new therapeutic candidates with smaller pharmaceutical companies and biotech venture firms.

As of the end of September, Samsung Biologics has won 100 orders for drug development projects.

CHINESE PHARMAS IN TROUBLE DUE TO CONFLICT WITH US

Park said Chinese pharmaceutical firms are having difficulties winning orders due to the US-China conflict. This offers an opportunity for Korean companies to rise in the global CMO and CDMO sectors.

Chinese companies such as WuXi Biologics have grown rapidly as CDOs after initially entering the contract manufacturing market.

He said it is too early for Samsung Biologics to seriously enter the cell and gene therapy market as a CDMO.

“The current condition for the global cell and gene therapy market is similar to the situation for antibody drugs 20 years ago,” he said. “We judge that it's still too early for us to enter the market.”

Rather, the executive said, Samsung is interested in expanding its facilities for antibody drugs, including one for treating Alzheimer’s disease.

Samsung, which recently opened its fourth CDMO factory – the world’s largest on a single site – plans to build a fifth plant in Songdo, Incheon, west of Seoul.

The new plant will house manufacturing facilities for antibody-based biopharmaceutical products, including antibody drug conjugates (ADCs).

TO DOUBLE MANUFACTURING CAPACITY

In July, Samsung said it will double its manufacturing capacity by building four additional plants worth 7 trillion won ($5.3 billion) to become the world’s leader in both the CMO and CDO businesses.

Samsung has been ramping up its facilities to meet growing demand from its clients.

Most biopharmaceutical companies such as Pfizer, Moderna, AstraZeneca, and Janssen, Johnson & Johnson’s pharmaceutical division, focus only on R&D. Without their own production facilities, they outsource production to contract drugmakers.

Korea is home to the world’s leading contract drug manufacturers, including Samsung Biologics.

Write to Jae-young Han at jyhan@hankyung.com
In-Soo Nam edited this article.