Samsung BioLogics Signs a $897 Million CMO Contract with Pfizer, The Largest Deal in Company History
Panoramic view of Samsung Biologics 3rd Plant / Photo = Samsung Bilogics
Samsung BioLogics, a leading biopharmaceutical contract development and manufacturing company (CMDO), has captured the attention of the industry with a contract manufacturing organization (CMO) deal worth 1.2 trillion won ($897 million) with Pfizer, a renowned pharmaceutical company based in the United States.
On the 4th of July, Samsung Biologics announced that it had recently inked two significant production contracts worth $897 million, including an additional contract valued at $193 million and a fresh deal amounting to $704 million.
This agreement with Pfizer marks the largest single deal in Samsung Biologics’ history. With this new contract, the cumulative contract size with Pfizer for this year has spiked to $1.08 billion (approximately 1.418 trillion KRW), as per the company’s public disclosure data.
Back in March, Samsung Biologics and Pfizer signed a CMO contract for a single product. Under this contract, the newly completed 4th plant of Samsung Biologics will begin manufacturing Pfizer’s multi-species biosimilar product portfolio, including oncology, inflammation, and immunotherapy, by 2029.
The notable aspect is that Samsung BioLogics managed to secure its most significant contract ever, valued at $897 million, less than a month after surpassing $10 billion (around 13 trillion KRW) in cumulative orders during the Bio USA period in June. Experts in the field attribute this success to President Lim Jon Lim’s effective management style, which has allowed Samsung Biologics to consistently secure large-scale contracts. Since assuming the role in December 2020, President Lim Jon Lim has continuously embraced challenges and changes, catering to market demand and customer needs.
An official from Samsung Biologics stated, “This contract signifies a long-term commitment to produce multiple products within the customer’s portfolio, distinguishing it from our current single-product production contracts. This is of great significance.” The official further emphasized, “Securing a long-term production contract for a portfolio demonstrates that our customers recognize us as a ‘reliable partner’ as a result of our company’s competitive advantages, such as production capacity, speed, and excellent quality.”
Industry experts suggest that Samsung Biologics clinched this major contract with Pfizer due to its differentiated CMO facilities and technology. Jeong Yoon-taek, the head of Strategy at the Pharmaceutical Industry Organization, affirmed, “Samsung Biologics has implemented Samsung Electronics’ semiconductor factory system, leading to validation from global companies based on their distinctive CMO facilities and technology. This achievement holds great significance.”
Moreover, Samsung Biologics has been successfully securing major global pharmaceutical clients, capitalizing on its competitive advantage of winning orders and expanding long-term contracts on a large scale. Currently, 13 out of the top 20 global pharmaceutical companies are maintaining a steady growth trajectory.
Panoramic view of Samsung Biologics 3rd Plant / Photo = Samsung Bilogics
Samsung BioLogics, a biopharmaceutical contract development and manufacturing company (CMDO), signed a contract manufacturing organization (CMO) contract worth 1.2 trillion won with Pfizer of the United States, drawing attention from related industries.
Samsung Biologics announced on the 4th that it has signed two shipment production contracts worth $897 million (about KRW 1.2 trillion), including an additional contract of $193 million and a new contract of $704 million.
According to the company, this deal with Pfizer is the company’s largest single deal. The total cumulative contract size for this year with Pfizer has increased to $1.08 billion (about KRW 1.418 trillion) from public disclosure.
Samsung Biologics and Pfizer signed a CMO contract for one product in March. Under this contract, the recently completed 4th plant will produce Pfizer’s multi-species biosimilar product portfolio, including oncology, inflammation and immunotherapy, by 2029.
In particular, Samsung BioLogics signed the largest contract ever worth 897 million dollars in less than a month after surpassing 10 billion dollars (about 13 trillion won) in cumulative orders during the period of Bio USA in June. The industry analyzes that President Lim Jon Lim’s management style is effective against the backdrop of Samsung Biologics’ successive large-scale contracts. Since being appointed as president in December 2020, President Jon Lim has been constantly seeking challenges and changes while responding to market demand and customer needs.
An official from Samsung Biologics said, “This contract is a contract for the long-term production of a customer’s product portfolio that includes multiple products, unlike the current single product production contract. “It means a lot,” he explained.
The official added, “Signing a long-term production contract for our product portfolio means that we have been recognized as a ‘reliable partner’ by our customers based on our company’s competitiveness, such as production capacity, production speed, and excellent quality.”
Industry experts say that Samsung Biologics signed a large-scale contract with Pfizer because it differentiated CMO facilities and technology. Jeong Yoon-taek, head of Strategy of the Pharmaceutical Industry Organization, said, “Samsung Biologics applied Samsung Electronics’ semiconductor factory system and received validation from global companies based on differentiated CMO facilities and technology.” It is meaningful that we did that,” he said.
On the other hand, Samsung Biologics secures major global large pharma customers based on its competitive advantage in winning orders and increasing long-term contracts on a large scale. To date, 13 of the top 20 global pharmacies are on a stable growth trajectory.
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